Military Aid Causing Concern

November 2006 | Ratings Update

A proposed loan from Venezuela, which will be used to bolster Bolivia's military posts on its borders, has been the target of criticism from neighbouring countries. The loan is likely to be around US$12mn, and the Bolivian government says that it will be used for combating drug trafficking near the border with Brazil and on engineering works on the Peruvian border. Although Defense Minister Walker San Miguel denies that the loan will be used to boost armaments, there has been widespread concern over the nature of Venezuela's military aid offer. Bolivia's relations with some neighbouring countries, in particular Chile, may

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