CAF approves loans to face the health and economic crisis in Ecuador

The Latin American Development Bank (CAF) confirmed on Friday that it has approved two loans for Ecuador, one to respond to the health emergency and the other to mitigate the economic impact caused by COVID-19, and that in total they would amount to about 400 millions of dollars.

The first loan is for 50 million, which will be used to strengthen the response capacity of the health system and the second, for 350 million, to financially support the Government's economic program and contain the social emergency due to the SARS-CoV-2 coronavirus. .

"With these financial resources we hope to quickly and efficiently support the government of Ecuador in its efforts to mitigate the impact that the COVID-19 pandemic is having on the economy and on vulnerable groups in the country," said Luis Carranza Ugarte, CAF Executive President.

The loans are added to the donation of $ 400,000 made by CAF on April 2, through the Ministry of Economy and Finance, to reinforce the communication strategy at the national level on issues of prevention and health care.

Furthermore, the entity is working on financing and executing social development programs "aimed at reviving the economy and preserving employment, with an emphasis on supporting women entrepreneurs and small entrepreneurs," reads the official gazette.

These operations are part of a series of loans for 2,500 million approved for CAF member countries and designed to counter the adverse cycle facing the region.

The Ecuadorian president, Lenín Moreno, announced yesterday on national television that his country has received credits from multilateral organizations for more than $ 1.4 billion, belonging to the International Monetary Fund (IMF) and the World Bank.

With these amounts it is expected to reactivate the economy and protect employment, in the framework of the fight against the coronavirus, which so far has claimed the lives of 1,654 Ecuadorians, according to the latest official figures.

Behind Brazil and Peru, Ecuador is one of the nations hardest hit by COVID-19, with 30,298 confirmed cases, the majority in the coastal province of Guayas.


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