• ENGLISH
  • ESPAÑOL
facebook
twitter
  • National>Entertainment
  • National>Local Economics
  • National>Local Politics
  • National>Society
  • National>Sports
BREAKING NEWS
Cristian Espinosa was appointed Ambassador of Ecuador to the United States
Daniel Noboa receives the credentials of the new United States ambassador
40,000 women will receive scholarships in higher education
Julian Assange released from prison, after agreement with the United States
Armed Forces: Criminal gangs have lost USD 1.2 billion due to military operations in Ecuador
Minister of Defense: “It is not fair that some risk their lives, while others play with justice”
How can green banana flour enhance baked goods?
“I’m crazy for wanting to serve my country,” says Daniel Noboa at the presentation of “La Cárcel del Encuentro” in Santa Elena
Construction of the Encuentro maximum-security prison in Santa Elena begins
National blackout in Ecuador due to transmission line failure, confirms the Government

The first IMF disbursement to Ecuador amounts to $ 652 million

Posted On 12 Mar 2019

Ecuadornews:

The process finished. On Monday, March 11, the Executive Board of the International Monetary Fund (IMF) gave its approval to the credit of $ 4.2 billion granted to Ecuador under the Extended Service (SAF). Of that amount, in the next three days the country will receive from the agency a first payment of $ 652 million.

From Washington the Directory remarked that the support to the economic policies of the Ecuadorian Government will be for the next three years. The IMF loan is part of the $ 10,279 million that Ecuador managed with seven multilateral organizations, including the World Bank.

In order to obtain financing, the Government presented the Prosperity Plan that includes state optimization, social protection and more aspects. “The Ecuadorian authorities are implementing a broad program of reforms with the objective of modernizing the economy and paving the way for solid, sustained and equitable growth,” said Christine Lagarde, IMF Managing Director. He added that the objective is to reduce the debt / GDP ratio through a combination of a rebalancing of the wage bill, careful and gradual optimization of fuel subsidies, prioritization of capital expenditure and goods and services, and a fiscal reform.

Esta imagen tiene un atributo ALT vacío; su nombre de archivo es P08_11-03-2019-plan_prosperidad-01.jpg

“The savings generated will increase spending on social assistance throughout the program,” he said. Lagarde also mentioned that the strengthening of crisis preparedness and supervision capacities of banks and cooperatives will strengthen the recovery capacity of the financial sector. He stressed that the efforts, already underway, to increase the autonomy of the Central Bank of Ecuador and establish a greater buffer of reserves, “will promote the institutional foundations of dollarization in Ecuador.”

The Extended Service Agreement (SAF) imposes an interest rate that is around 3% and a 10-year term repayment, with a four-year grace period. This type of program was designed to help countries facing serious balance of payments problems due to structural deficiencies or slow-growing economies and a weakened balance of payments. SAFs attend comprehensive programs that include policies to correct structural deficiencies over a prolonged period, says the official website of the IMF. “To protect the most vulnerable we need these resources, which will allow us to guarantee economic sustainability,” said Richard Martinez, Minister of Economy and Finance.

Esta imagen tiene un atributo ALT vacío; su nombre de archivo es P08_11-03-2019-plan_prosperidad-02.jpg

The Minister spoke from Paris (France), where today he will make an exhibition to begin Ecuador’s accession process to the development center of the Organization for Economic Cooperation and Development (OECD).

The analyst José Orellana explained that the amount approved for the first disbursement “exceeded expectations”, which will reduce the needs of the treasury. He explained that the resources will reach the International Reserves of the ECB, which will positively influence country risk. This allows the international image of Ecuador to improve and that later the re-profiling of the country’s public debt can be considered.

The approval of the financing by the IMF would also mean a green light to make the rest of disbursements from the other multilaterals. The economist Walter Spurrier said that the announcement issued by the international organization is a formality of the approval of the financing and its disbursement.

Analysts expect the Government transparent the concrete actions of the economic plan. Martínez will hold a press conference to inform more details of the agreement with the IMF upon his return to the country. (I)

Source:  https://www.eltelegrafo.com.ec/noticias/economia/4/fmi-aprobacion-acuerdo-ecuador

About the Author
  • google-share
Previous Story

Corruption becomes a trend in networks

Next Story

Ecuador leaves Unasur because it diverted its integrating mission

SEARCH

LATEST NEWS

ecuadortimes-cristian-espinosa-was-appointed-ambassador-of-ecuador-to-the-united-states_cristian-espinosa-fue-nombrado-embajador-de-ecuador-en-estados-unidos

Cristian Espinosa was appointed Ambassador of Ecuador to the United States

Posted On 28 Jun 2024
ecuadortimes-daniel-noboa-receives-the-credentials-of-the-new-united-states-ambassador_daniel-noboa-recibe-las-cartas-credenciales-del-nuevo-embajador-de-estados-unidos

Daniel Noboa receives the credentials of the new United States ambassador

Posted On 27 Jun 2024
40-000-mujeres-recibiran-becas-en-educacion-superior

40,000 women will receive scholarships in higher education

Posted On 26 Jun 2024
Copyright © 2010 - 2019. All Rights Reserved. EcuadorTimes.net