ECUADORIAN GOVERNMENT WILL REASSIGN RESOURCES TO HEALTHCARE

Mar 30, 2020
2 min read

The emergency contributions by the FMI will arrive in april.

The government decided to use the resources of a loan that was initially for the energetic sector, to help the sanitary emergency.

On March 25th, the president Lenin Moreno informed that this is USD 250 million from Banco Interamericano de Desarrollo (BID) granted to Ecuador to invest on interconnecting electrical infrastructure between Peru and Ecuador.

BID has granted other emergency resources.

The Ministry of Finance informed this week, that BID, Banco Mundial and Banco de Desarrollo of America Latina CAF will give the country USD 100 million of additional emergency financing because of this situation of the virus progress.

The country waits for other emergency resources of the FMI. The multilateral part informed that it is analyzing Ecuador´s request to receive USD 500 million of the fund’s quick financing. The process to receive the money, starting from the request could take four to eight weeks.

Finance indicated that the resources could arrive to the country on the third or fourth week of april. According to the fund, this loan could be used to implement politics to face covid-19, and the hard fall of the oil prices. Ecuador would not be obligated to use the financing only on healthcare.

In the international market, the perception of Ecuador before the investors improved a little after the government announcement last Monday, when it was confirmed that they will pay the USD 325 millions of bonus and that they will postpone the payment of interest for 30 days for a sum of USD 200 million.

The country risk indicator in Ecuador, shows the default risk of a nation, it fell 818 points after the announcement, and, it is on 5245 points on Tuesday. However, risk rating agencies such as Fitch Ratings and S&P Global, degraded the credit rating in the country after the government announcement.

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