IMF will decide whether to approve loan for Ecuador

Ecuador estimates to obtain USD 6.5 billion.

September 30 is an important date for the economy of our country because it would add a new debt.

Augusto de la Torre, a member of the government’s council of economic advisers, reported that the International Monetary Fund (IMF) will decide whether to approve a loan of USD 6.5 billion, which is part of the economic program requested by Ecuador.

On August 28, the IMF technical team, led by Ceyda Oner, approved a loan under the IMF Expanded Service (SAF) modality, however, the final step is for the Executive Board of the multilateral organization to approve the program .

The new SAF agreement is expected to support Ecuador’s policies to expand the coverage of social assistance programs and ensure fiscal and debt sustainability.

In addition, it is projected that previous actions will be implemented, so that the IMF provides financing and guarantees from international partners.

Between October 2020, the Treasury expects to receive USD 4 billion from the IMF and the rest of the resources would be distributed in USD 1.5 billion in 2021 and USD 1 billion in 2022.

The interest rate on the loan will be less than 3% and the payment term will be 10 years.

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