AN International Monetary Fund (IMF) loan that was “irregularly managed” by Bolivia’s former coup administration of Jeanine Anez has been sent back, the central bank announced on Wednesday.

According to the bank, the loan of $356.7 million (£249m) had jeopardised “the country’s sovereignty and economic interests” through a rapid financing instrument (RFI), which placed conditions on fiscal, financial, exchange rate and monetary duties.

The loan was approved by the IMF last April, with the executive saying that it was necessary for “urgently required medical spending and relief measures, while addressing the country’s balance of payments needs.”

But the bank said that it violated the Bolivian legal framework and added additional costs to the economy, which stand at $24.3m (£17.5m).

The Bolivian government has announced investigations that could lead to the prosecution of all officials involved in the “illegal arrangement” with the IMF.

Prior to the November 2019 ousting of president Evo Morales in a Washington-backed coup, the Andean country had not signed a deal with the IMF since 2005.

Its financial independence allowed economic improvements, nationalisations and investment in public services and social programmes.

Mr Morales’s Movement Towards Socialism (MAS) swept to landslide victories in both presidential and parliamentary elections last October.