The resources will support closing the deficit gap, which this year would be $ 4 billion.
The Board of Executive Directors of the Inter-American Development Bank (IDB) approved today a loan of $ 500 million for budget support in Ecuador. The event is described by the Ministry of Economy as a new demonstration of the continued support of the international community for the economic program of the Government of the Meeting.
“The objective of this financing is to ensure fiscal sustainability and safeguard social protection, in the context of economic recovery”, highlighted the Minister of Economy and Finance, Simón Cueva, who also recalled that the approved loan is aligned with the objectives of the country’s program with the International Monetary Fund (IMF).
The credit, which has a term of 7 years, a 3-year grace period and an interest rate based on LIBOR, It complements an active portfolio of projects that strengthen fiscal sustainability and extensive non-reimbursable technical assistance resources that the IDB has provided and will continue to provide to help achieve the goals of the national government.
Ecuador estimates to close this year with a deficit of $ 4,000 million. This is a significant reduction in the deficit, which in 2020 was $ 7 billion, especially as an effect of the pandemic. While, for 2022, the proforma foresees a deficit of $ 3,500 million.
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