Ecuador and China negotiate the sale of crude oil and the delivery of a loan

Our country requires USD 1.4 billion.

A total of 50 million barrels of crude would sell Ecuador to China.

The negotiation is in a pre-sale process, but the number of barrels of oil available to deliver in the coming years has already been established. In exchange, our country would seek to grant a loan for USD 1.4 billion.

The negotiation process is divided into two parts. One related to the amount of crude oil committed and operational delivery issues. The other refers to financing that is urgent to the Ecuadorian Government.

This last point is under the responsibility of the Ministry of Economy and Finance and takes longer because it depends on delivery times and other conditions.

The money will be registered in the balance sheets of the Ministry of Economy, an operation that would differ from the one carried out during the previous Government. On that occasion, the Comptroller General of the State would have determined that there was an illegal movement with the documents signed by Petroecuador and Finance.

On this occasion, the agreements are made separately, although the same point would be reached as to receive resources for the needs of the Government.

For example, Executive Decree 1075, signed on June 23, empowers public companies (through their management) to deliver funds and resources to the Government.

Meanwhile, the negotiators anticipate that the conditions in this negotiation with the Asian country are better.

Although some contracts have been renegotiated, they remain in force until 2024. Due to the health emergency and the breakdown of the Trans-Ecuadorian Pipeline System (SOTE), the signed deliveries at the beginning of the year for May and June were rescheduled.

Source: Expreso, social networks

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