USD 970 million of the Chinese loan fall short

The millionaire loan granted by China on Friday of last week falls short given the delays and compromises of the government this year.

Ecuador signed last Friday a loan of USD 970 million with the Industrial and Commercial Bank of China (ICBC).

The loan, which is freely available, is divided into two sections: one of 820 million, to be disbursed in the coming days; and another 150 million, which will be delivered later.

Jaime Carrera, director of the Fiscal Policy Observatory, says that “given the magnitude of the debts, these disbursements will not be enough.” For example, he says that these resources only cover 38% of the arrears with which the Government closed 2015 (USD 2 546.1 million).

Source: http://www.elcomercio.com/actualidad/millones-credito-chino-quedan-cortos.html