The Ecuadorian Ministry of Economy and Finance said on Friday, May 1, the 5-year loan came with “favorable conditions” at 1.05% interest.
The country faces a double crisis in the form of the virus and a fall in oil prices, with the IMF forecasting a drop of 6.3% in the country’s gross domestic product in 2020.
Ecuador has so far reported more than 25,000 COVID-19 infections and 1,000 deaths linked to the disease.
“This financing will provide the necessary liquidity to support the reactivation of production and the protection of jobs,” the ministry said in a statement.
The credit offering joins a 3-year economic assistance program signed by Lenin Moreno’s government with the international body in 2019.
That $4.2-billion loan involved a raft of cuts and fiscal adjustments that led to a wave of protests in October 2019 when the government raised fuel prices. – Rappler.com