This December 7, the Executive Board of the World Bank (WB) approved a freely available loan for $500 million for Ecuador. Added to this is a $30 million non-refundable grant from the Global Concessional Financing Facility (GCFF) as a contribution from the United States and Canada. “These resources are aimed at supporting the Government’s efforts to promote inclusive, resilient and low-carbon development,” said the multilateral entity.
The approved operation It is the second in a series of three loans that will allow the Ecuadorian government to continue with the implementation of policies to address structural challenges. that allow it to achieve fiscal sustainability, promote job creation and protect the most vulnerable people, as well as strengthen a low carbon development and comply with the commitment acquired by the country to achieve carbon neutrality by 2050. The first operation for $700 million It was approved by the World Bank Board of Executive Directors in February 2022.
From the Government, trust is highlighted. “The support of the World Bank is essential for the sustainability of Ecuadorian public finances and for the strengthening of social programs that protect vulnerable families. The fiscal order with a social focus, the reactivation of production to generate employment and the protection of the environment are priorities for Ecuador,” said the Minister of Economy and Finance, Pablo Arosemena.
This operation has two pillars. First supports critical elements of the economic, social and comprehensive security axes of the Plan for the Creation of Opportunities which, among other things, seek to ensure that public finances are managed in a sustainable and transparent manner, improve risk management, protect families and promote social inclusion and climate resilience of vulnerable groups. the second pillar supports the axis of ecological transition which seeks to promote green growth measures through a low carbon economy and climate change mitigation and adaptation measures.
“The World Bank, through this second financial support operation, recognizes the efforts of the Government of Ecuador to achieve sustainable growth and protect the most vulnerable groups, improving inclusion and social resilience”, said the Director of the World Bank for Bolivia, Chile, Ecuador and Peru, Marianne Fay. “Through the GCFF we also support the country with non-reimbursable resources in the process of registration and regularization of the migrant population, in this way it will be possible to maximize the benefits of migration for both migrant communities and host communities.”
The loan is of a variable rate, repayable in 18 years, including a grace period of 4 years.
As for the non-reimbursable donation of $30 million, it comes from the Global Concessional Financing Mechanism. Through this fund, the World Bank supports the efforts of middle-income countries to address the needs of refugees and host communities. These funds support the efforts of Ecuador to guarantee the rights of the Venezuelan refugee and migrant population and their integration into the country. The GCFF grant for Ecuador was made possible by contributions from the United States and Canada.
More of 502,000 Venezuelan refugees and migrants reside in Ecuador, which makes this country the third host nation of the more than 7.1 million Venezuelans who have left their country since 2018. To reduce the vulnerability of migrants, in September 2022, the Government announced a special registration and regularization process. The registration step of this process, led by the Ministry of the Interior, involves the creation of an updated registry of migrants of all nationalities, that they must include in the registry their personal identity information and their socioeconomic characteristics.
The registry will contribute to increasing the Government’s capacity to plan and implement public policies. Registered migrants also receive protection from deportation and immigration-related fines. The regularization stage of this process, led by the Ministry of Foreign Affairs and Human Mobility, allows, in its first phase, Venezuelan migrants who regularly entered the country to apply for a special temporary residence visa (VIRTE). GCFF resources will support these critical steps for the economic and social integration of Venezuelan migrants. The funds from this gift are in addition to those awarded in the past by the GCFF in May 2020 ($6 million) and November of that same year ($14.1 million).
“Ecuador is helping to lead the protection of refugees and migrants. The United States strongly supports Ecuador in strengthening the legalization process and facilitating integration with host communities,” he said. Eric Meyer, Assistant Secretary of the United States Department of the Treasury. “The GCFF, with a host-led model and results-based framework, is an effective platform to help refugees and their host countries.” (YO)
Source: Eluniverso
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