The former Minister of Economy and Finance, Mauricio Pozo, in his end-of-term report, increased the financing needs of the new Government to cover all the expenses planned for this year.
Initially, it was expected that the deficit that the country would face was USD 8,700 million, but in Mauricio Pozo’s report it was detailed that it will be USD 11,600 million, although he did not explain the reasons for this increase.
“In terms of public finances, in 2021 it estimates total financing needs of USD 11.6 billion, a figure that differs substantially from the more than USD 20 billion of 2020 and 2019. These figures were recently adjusted, because for this year the it maintained a financing needs value of USD 8.7 billion ”, the document states.
The report also announces that, from the multilaterals, financing for USD 3.6 billion could arrive. In addition, Pozo reiterated that in January 2021 an agreement was concluded between the DFC (Development Financial Corporation) between the Government of the United States and the Ministry of Finance that opens a financing of USD 3,500 million with an 8-year term and 2.25% per year.
To carry out this financing, it would begin with the monetization of State assets, something that President Lasso supports. He indicated that in his mandate there will be various concessions, sales and privatizations of State assets.
“We have worked with the collection of information that make the different credit projects viable. The next government will be the one to complete the receipt of these funds derived from this agreement, which is undoubtedly highly advantageous for the country, ”said Pozo.
On the other hand, the former minister indicated that the arrears left by the Government reach USD 1,161 million, “not including what is defined in the negotiations for the payment of 40% of the pensions to social security, which amounts to USD 913 million.”
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