Economy
11:28, 21-Feb-2019
Ecuador inks $4.2 billion financing deal with IMF: Moreno
["other","Ecuador"]
Share
Copied
Ecuador has reached a staff-level financing deal of 4.2 billion U.S. dollars with the International Monetary Fund (IMF), President Lenin Moreno said on Wednesday, as the Andean country grapples with a large fiscal deficit and heavy external debt.
The country will also receive 6 billion U.S. dollars in loans from multilateral institutions including the World Bank, the Inter-American Development Bank, and the CAF Andean development bank, Moreno said in a message broadcast on national television and radio.
Ecuador's sovereign bonds surged last week after the IMF confirmed it was engaged in formal talks with Moreno over a possible financial arrangement. Staff-level agreements between the IMF and member countries are subject to approval by the Washington-based lender's executive board.
The OPEC nation's debt grew under former leftist president Rafael Correa. Moreno earned Correa's support during the 2017 election campaign, but has implemented more market-friendly economic policies since taking office.
Source(s): Reuters