The Ecuadorian government, headed by Lenin Moreno, will provide one billion dollars in credits to the small business for economic reactivation in the framework of the financing program “Credit, investment and employment”, said on October 10 in a press release.
The head of state will present his new government plan of financing for prosperity on Thursday at a public ceremony, with which he expects public banks to grant credits that support the economic reactivation.
The institutions that will participate in the granting of the loans are the National Financial Corporation, BanEcuador, Banco de Desarrollo of Ecuador, National Corporation of Popular Finance, Biess and Banco del Pacífico, which have designed a varied portfolio of credit projects to promote the small company.
The credit projects are aimed at micro, small and medium enterprises; as well as the agricultural sector, construction, entrepreneurs and students.
According to the statement, the program of support for small businesses meets a “new milestone” in the policy of the Executive of Moreno, by injecting more than one billion dollars “to guarantee the credit directed to investments and ventures”.
Since coming to power in May 2017, Moreno is trying to boost his country’s economy through private entrepreneurship – unlike his predecessor, Rafael Correa, who did it from the public purse – and has therefore lightened the requirements for that small entrepreneurs can access lines of credit.
Despite optimistic initial estimates, the IMF downgraded the growth expectations of the Ecuadorian economy on Tuesday to 1.1% in 2018 and 0.7% in 2019.
This reduction has not surprised because for months now the main international and national organizations have warned of a slowdown, despite the relatively good results in 2017, when it grew by 2.4%. (I)