Bolivian President Rodrigo Paz fired his economy minister on Friday after Congress voted to censure him for refusing to answer questions about his handling of the country worst economic crisis in four decades.
Jose Gabriel Espinoza was removed from his post after legislators voted on Tuesday to oust him for failing to appear before lawmakers. Paz initially resisted the move, claiming Congress had not mustered enough votes, but eventually bowed to parliamentary pressure.
The president named Environment Minister Oscar Mario Justiniano Pinto as interim economy minister pending the outcome of a Constitutional Court challenge the government filed against the censure vote. Espinoza had been central to negotiations with the International Monetary Fund, which has approved a $1.9 billion bailout package for the struggling nation.
A Presidency Under Siege
Paz nine-month-old administration has faced relentless turbulence since he took office. Earlier this year, his decision to scrap decades-old fuel subsidies that had drained the Treasurys dollar reserves caused prices to double overnight, triggering mass protests across the country. Roadblocks cut off major cities and demonstrators called for the president resignation.
Paz, whose election ended two decades of socialist rule, declared a state of emergency in June to quell the unrest. The crisis deepened this week with the arrest of a close presidential adviser in a separate widening scandal, compounding the political damage.
The removal of Espinoza comes as the South American nation suffers through its worst economic turbulence in four decades, AFP reported from La Paz. The economy minister had cited a visit to the eastern city of Santa Cruz and then Brazil as his reason for missing the congressional hearing.
IMF Talks at Risk
The shake-up threatens to disrupt Bolivias delicate negotiations with international lenders. Espinoza had been the government lead negotiator with the IMF, and his sudden departure raises questions about continuity in the countrys economic reform program. Paz replaced him with Justiniano Pinto, who held the environment portfolio, signaling the urgency of the appointment.
The Constitutional Court challenge could take weeks or months to resolve, leaving the interim arrangement in place as Bolivia grapples with currency pressures, depleted reserves, and soaring consumer prices. The outcome will test whether Paz can stabilize his government long enough to see through the structural reforms that lenders are demanding.
discussion