The World Bank has decided to forgive a debt of 1.5 billion U.S. dollars for Bolivia, according to reports reaching in Lima from Bolivia on Friday.

THe write-off came as Bolivia had reduced its budget deficit and met one of the essential requirements set by the multi-lateral bank, said Marcelo Giugale, World Bank's regional director.

This meant the bank could invest new resources within its National Development Plan, he added.

"Bolivia is free to invest anywhere within the guidelines of the plan," the official Bolivia News Agency quoted Giugale as saying.

He noted that the World Bank had given Bolivia some guidelines, suggesting that the country should boost education at primary and pre-school levels and invest more to keep pupils from dropping out of secondary schools.

Giugale said that the World Bank would support Bolivia with all possible technical aid.

Bolivia's budget deficit is expected to account for 3.2 percent of the country's gross domestic product (GDP) this year, down from 9 percent three years ago.

Source: Xinhua