Universidad Católica Boliviana "San Pablo"

ABSTRACT In Bolivia, since 2006 began a process of considerable changes promoted by the current Government. The implementation of the New Economic Model: Social Community- based Productive brought with it implications, among them, variations in levels of attraction of Foreign Direct Investment (FDI), in loans and deposits of the local financial system, and, therefore, in bank interest rates. The core of the present investigation is to measure and compare data on the behavior of Foreign Direct Investment in Bolivia not only since 2006, but, for the last 15 years, to identify, through the collection, analysis and integration of quantitative data, how and why the levels of FDI affected the behavior bank interest rates in the Bolivian financial system. It is determined that there is a proportional relationship between Foreign Direct Investment and Bank Interest Rates, however, with the economic policies promoted in the new economic model, such relationship is affected when influenced with an excess of liquidity in the market, resulting in both, a decrease of interest rates, and low levels of FDI attraction, besides the accessibility to productive loans, with low interest rates. Key Words: Foreign Direct Investment, Bank Interest Rates, Economic Policies, Economic Model.