China and IESS will finance the state budget

The Social Security Institute (IESS), loans from China and multilateral agencies, will help cover the deficit of $ 5,050 million of the 2013 budget, as stated by the Minister of Finance, Fausto Herrera.

Credits with China would remain as the primary source of indebtedness of the country, which has already received $ 1,400 million from the oriental country earlier this year, and would yet have to receive a similar amount probably in August and would include the early crude sale as payment.

In total, the Chinese would finance about $ 3,812 million, between loans and previous projects. Multilateral agencies such as the Andean Development Corporation (CAF), would also contribute to the budget with $ 553 million, while the IESS would participate with $ 1,000 million through the purchase of government bonds.

Herrera explained that the total sum from the sources is $ 6,254 million, ie $ 1,204 million more than necessary for this year, which would serve as “debt repayment costs.”

Fausto Herrera Nicolalde, Minister of Finance, along with his advisers, at a press conference about the issue of 2013 state budget and the debt with China.