Bolivian generals change govts again

Press, 21 July 1982, Page 8

Bolivian generals change govts again

NZPA-Reuter .. La Paz The Bolivian President, Celso Torrelio Villa, yesterday handed over power to a military junta which named the Army Chief of Staff (General Guido Vildoso) to become head of State next week. . General Torrelio Villa announced his resignation in a speech broadcast, live on radio and his successor was designated in a statement issued soon afterwards by the junta, composed of the commanders of the three armed services. The reduction of State

spending and the budget deficit are two key measures demanded by the International Monetary Fund as conditions for a stand-by loan to help Bolivia improve its external debt. According to business and diplomatic sources in La Paz, international banks and financial institutions will refuse to extend Bolivia more credit until it signs an agreement with the I.M.F. General Torrelio Villa said that Bolivia had been on the verge of rebellion, chaos and anarchy when he was named President by the armed

forces last year. He blamed Bolivia's economic crisis mainly on the world recession which had reduced the country’s export earnings from raw materials, high international interest rates which had increased service payment on its external debt, and a cut-off in aid by western, countries in protest against a military coup in 1980 which had prevented a newly elected civilian government from taking office. By some counts. General Torrelio Villa’s Government was the 191st in 156 years of Bolivian independence.