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Bolivia removes economy minister after congressional censure

Bolivia's government replaces economy minister Jose Gabriel Espinoza after Congress censured him, deepening a political crisis over austerity and IMF talks.

Bolivia's government has removed Jose Gabriel Espinoza from his post as economy minister, naming environment minister Oscar Mario Justiniano Pinto as his interim replacement. The presidential decree, published in the Official Gazette on Friday, comes days after Congress voted to censure Espinoza, a move the administration had earlier called unconstitutional.

Espinoza had said he would challenge the censure before the Constitutional Tribunal, and the government initially indicated he would stay in office pending that review. Friday's decree, however, ends that arrangement, though it does not specify a timeline for appointing a permanent minister.

The ouster lands at a delicate moment for President Rodrigo Paz's administration. The government is seeking legislative support for a financing program negotiated with the International Monetary Fund in July, which still requires approval from both Congress and the IMF's executive board. Bolivia has also faced widespread protests over austerity measures, fuel and foreign-currency shortages, and sluggish growth.

Espinoza, who had served as economy minister since Paz took office in November, was a principal architect of the government's economic policy and a key figure in talks with multilateral lenders. His removal drew support from both opposition and ruling-party lawmakers. Opposition legislator Rolando Pacheco said Paz was showing humility and complying with the constitution, while ruling-party lawmaker Claudia Bilbao said the departure should signal to cabinet ministers that they must work with parliament.

Espinoza had also faced scrutiny over the alleged purchase of an Audi at a declared value well below market price, which he attributed to a paperwork error.