Ecuadorian Government will receive USD 2.650 million from Multilateral Organizations between November and December 2020

Mauricio Pozo, Minister of Economy and Finance, affirmed that external financing will arrive in the country before the end of 2020.

The Minister of Finance, Mauricio Pozo, explained that Ecuador has secured at least USD2.65 billion in external financing between November and December 2020.

According to Pozo, the Treasury has these resources insured because the required conditions have already been met.

Now, it is expected that USD500 million will come from the World Bank, whose board will meet on Tuesday, November 24, 2020, to decide on that line of credit and it is expected that the resources will be disbursed immediately.

Until December 2020, the Treasury expects a loan of USD 150 million from the Inter-American Development Bank (IDB) and USD 2.000 million from the International Monetary Fund (IMF).

For the IMF’s disbursement, the Ecuadorian government must comply with an economic program (quantitative goals for economic indicators, a qualitative goal, and the approval of an anti-corruption law) proposed by the international organization.

Among the conditions for the loans are: the draft Law of Extinction of Domain, which is processed in the Citizen Participation Commission of the Assembly and the issuance of a decree with compensation measures for vulnerable sectors.

Last October 27, the government ordered the delivery of a bond of USD 145 to vulnerable families in Galapagos.

Another goal was a reform for the prices of fuel derivatives, this objective was met on November 4, 2020 with executive decree 1183, which states that the Agency for the Regulation and Control of Energy and Non-Renewable Natural Resources (ARC ), the entity that regulates the fuel marketing chain, will set prices within the reference bands of premium diesel, diesel 2 and extra gasoline and eco-country, without considering the costs of the Public Company Petroecuador.

Pozo said that this week, the IMF technical team will finish analyzing the quantitative goals for September, as part of the first revision of the agreement’s figures. «Quantitative targets have been over-completed,» he said. And he added that in December he expects the anti-corruption law to be approved.

«We are doing the dynamics for approval and hopefully this week passes the first debate and is approved in December,» he said.

In addition, according to Pozo, around USD 1.5 billion, from a credit operation with two Chinese banks tied to an oil sale, which were expected for this year, could arrive in 2021.

“We are working to obtain the resources of Chinese credit, which has its own characteristics and if it delays we are working on some alternatives. If for a reason China’s resources are postponed, that will come in next year, «he said.

Finance also works on strategies to inject liquidity into the private sector.

Pozo explained that the Ministry is analyzing issuing a production reactivation bond, which can be placed in international markets for direct investment to the private sector, with support from IDB Invest, the IDB body in charge of projects and financing for private companies. (C.D.A.)

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