Bolivia’s President Evo Morales said the most important aspect of the credit is to promote industrialization of the country’s hydrocarbon reserves.

“Industrialization will ensure that Bolivia is no longer one of the most underdeveloped countries in the hemisphere and that it can lift itself up by its own hands. It’s a wholesome, honorable and noble mission,” Morales said.

He said 30% of the $1 billion will be invested exclusively in industrialization projects, while 34.7% will be allocated for production, 16% to enhance transport capacity and storage and 15% to create a gas-separation plant in the Chaco region.

The remaining amount will be used for expanding and overhauling refineries in the provinces of Santa Cruz and Cochabamba.

YPFB”s Chief, Carlos Villegas said that YPFB will require investment of $10.74 billion over the next five years to insure implementation of all the country’s hydrocarbon projects.

The central bank governor, Gabriel Loza said that, from a legal standpoint the loan is categorized as a “Central Bank credit to the public sector” and that the amount was authorized in the government’s 2009 budget.