This represents 60.53% of total GDP
According to the latest report from the Ministry of Economy and Finance (MEF), the Ecuadorian public debt reached USD 58.418 million at the end of May 2020, this represents 60.53% of GDP. In just one month (from April to May) this item increased to USD 1,332 million.
In the public debt records managed by the Ministry of Economy and Finance, it is shown that in May 2019, the public debt, with the new calculation methodology, was USD 55,717.97 and represented 51.05% of GDP. This means that in one year it rose close to USD 3,000 million, despite the fact that several payments have been registered in recent months, especially to bondholders.
USD 41,564 million correspond to external debt and USD 16,853 belong to internal debt, of the USD 58,418 million.
Although in recent months the Government has resorted to new international credits to deal with the health crisis caused by Covid-19. It is evident that external indebtedness is a habitual practice of the last three years, since, in May 2017, when President Moreno assumed his mandate, the public debt registered in the MEF was USD 27,871 million.
Despite this, the country is still waiting for more loans from China that would add close to USD 2.4 billion. In addition, Ecuador is negotiating a new agreement with the IMF to access more financing.
According to the IMF itself, according to its latest report on Ecuador, the Ecuadorian public debt is expected to reach its maximum point in 2023, when it reaches 70% of GDP and then decreases to 67.7%, in 2025. The goal is that in 2030 it will reach 45% of GDP.
Source: Ministry of Finance