July 10, 2020

Ecuador requests a fast loan from the World Bank for 500 million to fight the coronavirus



Ecuadorian President Lenín Moreno announced this Saturday that he asked the World Bank (WB) for a quick financing plan for 500 million dollars to address the difficult social situation caused by the spread of COVID-19 in the country.

Moreno, in a Twitter message, indicated that he spoke with the managing director of the World Bank, Axel van Trotsenburg, to request the financing that will be destined to social and productive programs.

“I spoke of rapid financing of 500 million (dollars) for social and productive programs. We have a great project of economic reactivation to maintain employment and improve the quality of life of those affected by this crisis!” Moreno wrote.

The managing director of the multilateral organization, in response to the president, confirmed the support that he plans to provide to Ecuador and its reform program.

“I had a very constructive conversation with Lenin and reiterated the World Bank’s strong support for Ecuador’s reform program,” wrote Van Trotsenburg, in a Twitter message replicated by the Ecuadorian president.

The Government of Ecuador plans to have between 2,000 and 2,500 million dollars from multilateral organizations to attend to the coronavirus emergency and project the economic recovery that the pandemic will demand.

Last Monday, the International Monetary Fund (IMF) said it was studying Ecuador’s request to access a loan under the Quick Financing Instrument (IFR) modality, aimed at attending to the health emergency due to the coronavirus and the drastic fall in the price. of the oil.

“The Government of Ecuador expressed its intention to seek our financial support through the Fund’s Rapid Financing Instrument (IFR)” and, in response, “our team is working quickly to respond to this request,” so the Board of Directors of the The IMF “may consider” such a request, the agency’s managing director, Kristalina Georgieva, said in a statement.

In addition, he mentioned that in parallel the IMF is working with the Ecuadorian authorities in a new agreement backed by the Fund, “which is based on the framework of the Extended Financing Service (SAF), a credit agreement in execution for 4.2 billion dollars , which ties credits with several multilaterals for another 6,000 million.

The pronouncement of the managing director of the IMF was given in parallel to the announcement made by the Ecuadorian Minister of Economy, Richard Martínez, in the sense that Ecuador was preparing to pay about 320 million dollars of its 2020 bonds, allowing it free up some $ 2 billion from its usual sources of funding.

The minister noted that operations were being managed with other multilateral organizations and that it was anticipated to obtain from 1,000 to 1,500 million dollars of bilateral financing, especially with China.

Likewise, the Ecuadorian authorities have highlighted the international cooperation of various world organizations and friendly countries to face the pandemic.

Precisely, the Chinese mining company ECSA, which operates a copper mine in southeastern Ecuador, announced this Saturday that it will provide some $ 150,000 in medical equipment and supplies to support the health emergency in that region of the country.

“This economic item includes the delivery of biosafety supplies such as N95 and surgical masks, alcohol gel, soaps, surgical gloves, infrared thermometers, thermonibulizing pumps for fumigation, among others,” the operator reported in a statement.

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