In the following weeks, President Rafael Correa will sign a new loan with China, for 1000 million dollars.
This is totally confirmed, but little details are missing. According to his word, given in a radio interview, the conditions are different to the normal credits the gigantic Asian gives. The loan will be paid out in 20 years with an interest rate of 2%. Some past loans from China to Ecuador had rates of 7%. In total, until February, the debts with the Asiatic country were 8322,1 million dollars. That´s 20,8% of the Ecuadorian debt.
The new 1000 million dollars will have the exclusive destiny for the reconstruction of the affected areas because of the earthquake that occurred in Ecuador, on April 16th 2016. Because of the tragedy, the International Monetary Fund also gave 400 million dollars. Also, a tax reform that gathered, until March 20th, 1334 million dollars, was implemented.