Correa justifies the issuance of bonds by Ecuador

Photo: Reuters

In the framework of the placement of $ 2,000 million in the international market at a 10-year term and with an interest annual rate of 7.95%, President Rafael Correa yesterday justified the action stating that this resources will cover the fiscal deficit and the investment for future works.

Correa added that the issuance of these bonds is specified in the macro economic program of 2014. Thus Ecuador returns to the international market after 9 years since its last intervention.

“Clearly there is a deficit and should not be demonized; we are building eight hydroelectric plants and strategic projects (which will serve) to invest in works for the future and improve the country’s trade balance, its production capacity and to generate jobs,” said Correa.

Regarding the assertions by economic analysts who claim that this bonds issue represents foreign debt, the president questioned it and assured it is due to the high requirements of the Government for financing.