New Delhi, Sept. 19 -- Just hours after Congress approved the loan, President Rodrigo Paz announced an immediate end to subsidies for the diesel powering Bolivia's trucks, buses and tractors - a step toward meeting IMF demands. Gasoline, used mainly in private cars, would remain subsidized for now, though Paz had already scaled back that support in recent months.

The Senate ratified the IMF agreement a day after the lower house approved it, clearing the final legislative hurdle for the three-year financing program aimed at replenishing dwindling foreign reserves and stabilizing the ailing economy marked by high inflation and weak growth. The IMF first announced the staff-level agreement in July after months of negotiations with Paz's mar...