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The LatAm View wraps up its coverage of the 2026 IMF/World Bank Annual Meetings in Bangkok, Thailand, with a look at the big themes of the past week.
Soaring yields, an oil price shock and a looming Super El Niño dominated the meetings, but investors and lenders came away encouraged by the region’s turn toward orthodox policy, as our wrap explains. That shift was on display in the final days: the IMF hailed Bolivia’s “courageous” reforms as its first Fund program in more than two decades gets underway, while Paraguay’s finance minister, speaking on the sidelines of an event hosted by LatinFinance and CAF, said the sovereign will push more of its debt into guaranis. Uruguay’s central bank chief argued predictability has become the country’s edge, Chile is counting on a new law to revive investment, and governments that rushed to subsidize fuel are facing a costly trade-off.
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Reformers rewarded as shocks test LatAm: Bangkok wrap
Soaring yields, an oil price shock and a looming Super El Niño dominated the IMF/World Bank meetings, but investors and lenders came away encouraged by the region’s turn toward orthodox policy
Paraguay to curb USD debt exposure amid rate pressures
Finance minister says the share of the public debt in local currency should rise to 30% next year as the sovereign seeks to reduce fiscal risk
Bolivia wins IMF praise as $1.9 billion program gets underway
IMF official commends “courageous policy action” by Paz administration to secure Bolivia’s first Fund facility in more than two decades
Uruguay predictability paying off amid global uncertainty: central bank
Stability is part of Uruguay’s comparative advantage, bank chief Tolosa says, while indicating officials are ready to act on inflation
Investment seen reviving stalled Chilean economy
The government’s pro-investment tax package is projected to add 0.5% to growth over the next two years, says central bank governor
Oil price resurgence heightens subsidies trade-off
Some LatAm governments have cushioned the impact of subsidies on their finances by sacrificing badly needed investments
highlights from our IMF/WB coverage from Bangkok
LatAm bond market still open for issuers despite ‘challenging’ yields
Investor demand remains mostly unabated after the yield spike, but some issuers are balking at the increased cost of cross-border deals
External shocks ‘the new normal’ for small economies
Paraguay has emerged as an example of how a small economy can withstand an adverse external environment thanks to orthodox policies
Guyana remains GDP growth leader on oil gush
The government is pouring money into health and education, while courting private capital for major infrastructure projects
Latin America on edge as El Niño looms large
Policy makers are bracing for a prolonged economic drag from what could be the worst El Niño on record
Countries eye intraregional trade amid tariff uncertainty
Adding value to exports and boosting intraregional trade could help mitigate tariff-related disruption and commodity price volatility
Caribbean states grapple with energy, geopolitical pressure
Growth and investment are being threatened by soaring diesel prices, trade restrictions and pressure to end citizen-by-investment programs, say officials
Backed by US, Venezuela seeks return to global financial fold
As the US helps reshape Venezuelan government policy, major question marks hang over the restructuring of the country’s estimated $200 bln-plus debt and economic stabilization
Argentina holds fresh financing talks as rates climb
The country is looking to expand its funding from the World Bank, as rising global rates complicate a potential return to the bond market
IMF slams fuel subsidies, as Brazil cuts gasoline tax ahead of vote
Subsidies are fiscally “very costly” and distort markets, says senior IMF official, as Brazil rolls out new measures
Belize explores funding for marine projects: PM
The country is in talks to raise fresh financing for marine conservation projects at the heart of its 2021 nature swap, says prime minister
Vulnerable nations add to climate financial architecture
A fund to provide liquidity to member nations facing balance of payments crises from climate shocks will be ready in April 2027
Soaring yields pose new test of LatAm resilience
Investor demand for the region’s debt has held firm despite the energy shock, but rising global rates are a new source of risk
Panama diversifying debt to retain its allure: FinMin
The sovereign aims to remain a credit investors want to hold “when capital is scarce” and doesn’t see labeled bonds as a priority, minister says
Jamaica working to return to growth
The sovereign tapped the bond market last month even as its economy contracts, though it has no plans to return “anytime soon,” minister says
LatAm better positioned to reap benefits of commodities boom: IDB
The region has a “powerful” combination of mineral, energy and agricultural resources, and has made strides in better managing this wealth, bank official says
Small AI can aid LatAm productivity gap: World Bank
The region could see big benefits from AI but not necessarily in the headline-grabbing large models, says senior World Bank official
That’s a wrap for The LatAm View from the IMF/World Bank meetings in Bangkok! See you at the IDB Group Annual Meetings March 2027
For feedback on our coverage, please get in touch with us by emailing editorial@latinfinance.com
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