The Ecuadorian Government has three financing plans
Placing bonds in international markets, oil presales and more obligations paid with Treasury bills are three ways contemplated by the Government to finance its budget this year, according to the draft economic plan that was socialized on Monday by the Minister of Finance Carlos de la Torre.
According to him, the deficit to be covered with debt would be $ 4.6 billion, and he also plans to issue $ 780 million more in Treasury bills, while some $ 1.3 billion could be obtained from oil presales.
However, at the moment, the Government would have a financing need (deficit plus amortizations) of $ 7 billion, if it met the goal of reducing its deficit to $ 4.6 billion and if it is taken into account that the amortizations would reach this year to $ 2.4 billion, said Jaime Carrera, director of the Fiscal Policy Observatory.
In these scenarios, the government has three options: lower spending, wait for reactivation or resort to financing (I).