LA PAZ, May 19 (Reuters) - Banks temporarily closed branches in Bolivia's capital La Paz on Tuesday as escalating anti-government unrest sounded alarms and foreign diplomats called for calm.
Demonstrations by unions, miners, transport workers and rural groups have grown in recent weeks, pressing centrist President Rodrigo Paz to roll back austerity measures and address rising living costs.
Some protesters have called for his resignation, reflecting a broader backlash against his government, which took
office in November after nearly two decades of leftist rule.
U.S. Deputy Secretary of State Christopher Landau said he spoke with Paz on Tuesday and was very concerned about the situation.
"Let there be no mistake: Those who lost overwhelmingly at the ballot box in Bolivia last year are trying to overthrow President Paz," Landau wrote.
Meanwhile, the European Union delegation in Bolivia and five European embassies issued a joint statement calling for dialogue and peaceful demonstrations.
In downtown La Paz, banks including Banco Nacional de Bolivia, Banco de Credito de Bolivia (BCP), Banco Economico and state lender Banco Union shuttered some branches, according to a Reuters reporter and notices in the media. The banks re-directed customers to online banking services and ATMs.
Workers at five banks on Tuesday told Reuters that operations would not resume until protests had subsided.
Bolivia's banking association, ASOBAN, declined to comment on the cause of the closures but said the banks were still partially operational.
While central La Paz remained relatively calm on Tuesday morning, some protesters were heading to the area and a public transport strike was reported in neighboring El Alto. Access to the Plaza Murillo square, where the presidential palace is located, was tightly controlled by police.
The protests have also triggered widespread roadblocks, stranding trucks on highways and contributing to shortages of food, medical supplies and fuel. At least 32 roadblocks were reported on Tuesday.
“It’s difficult to be in the city of La Paz. It’s as if we were surrounded," said housekeeper Ana Uria, citing a lack of vegetables and diesel.
At a primary clinic in La Paz, doctor Jorge Hinojosa treated a woman injured in Monday's clashes, using a piece of cardboard as a makeshift splint.
"Because of these conflicts, the patient couldn't get medical attention," Hinojosa said. “We need medications. We need supplies that we cannot obtain because of the blockades."
Bolivia's state energy company YPFB said on Monday blockades at its Senkata plant and several other roads nationwide had forced it to suspend shipments to affected areas.
Authorities are expected to announce measures this week to allow supplies to enter La Paz and El Alto.
BOLIVIA UNREST TESTS NEW PRESIDENT PAZ
Paz, who inherited an economy in turmoil, has pushed to cut spending and scale back fuel subsidies to stabilize public finances. He has raised the minimum wage by 20%, increased some social benefits and opened dialogue, but the measures have failed to quell tensions.
Authorities have blamed allies of former leftist president Evo Morales for encouraging the blockades. Government spokesperson Jose Luis Galvez said on Monday that violent groups were undermining democracy.
According to economist Gonzalo Chavez, the unrest reflects deeper structural strains as Bolivia faces its worst economic crisis in a generation.
“There are no easy or quick solutions in sight,” said Chavez, adding that Bolivia was caught between the exhaustion of a state‑led economic model and the absence of a viable alternative.
Analysts point to global energy shocks linked to the Iran war, which are adding pressure on households in the landlocked country that increasingly relies on fuel imports.
(Reporting by Daniel Ramos in La Paz, Sergio Limachi and Santiago Limachi in La Paz, Lucinda Elliott in Montevideo; Additional reporting by Monica Machiaco in La Paz, Andrea Shalal in Washington and Cesar Olmedo in Asuncion, Editing by Daina Beth Solomon, Alexandra Hudson and Stephen Coates)
