The State will support the recovery of assets affected by the national strike

The delivery of around $ 100 million in state loans to local governments remained unfinished due to protests last week.

The Development Bank of Ecuador (BDE) had planned to deliver the amount for various projects.

The State will support the recovery of assets affected by the national strike

Among these provision of drinking water and sanitation works aimed at rural areas, agro-productive irrigation, roads, urban regeneration and housing projects. Carlos Jaramillo, general manager of the BDE, told EL TELÉGRAFO that they hope to resume these processes in the coming days.

However, the official is aware that sectional governments are focused on covering emergencies and rebuilding their cities, affected by the demonstrations.

However, the head of the BDE considers that the works that were already planned should continue while the reconstruction is being carried out. Some of the paralyzed loans are part of the government’s “Safe Water for All” mission.

This program is expected to place $ 800 million in loans until 2021. Since 2017 to date they have already delivered about $ 500 million.

In addition to these funds, Jaramillo expects that the councils will request more financing to clean up the damage to the heritage infrastructure.

He says that the most affected cities are Quito, Latacunga, Ambato and Cuenca. “There is no quantification of the damages yet, but in heritage matters in many cases it is irremediable,” said Jaramillo.

For example, the official says, in Cuenca the protesters mined the stone of the Tomebamba River and the marble of the curbs was crushed to use them as projectiles against the buildings that, in certain cases, are buildings that exceed 300 years.

To repair these damages, the BDE will urgently facilitate the line of credit for patrimonial attention, a product that already exists in the state bank. This loan will be given to you for emergent attention to urban real estate and furniture, so that these do not continue to deteriorate.

Then other credits may be given with more elaborate studies for the final restoration of heritage.

So far this year, the BDE has disbursed about $ 15 million in loans of this type.

Jaramillo estimates that until the end of 2019, due to the emergency, $ 10 million will be added.

The BDE also plans to provide a new product for the revival of tourism in smaller jurisdictions.

The resources will be used, for example, to build infrastructure for the attraction of travelers.

Up to $ 100,000 non-refundable will be awarded for these works. And if more budget is required, the funds will be supplemented with resources payable. To access this program, the economic model of the tourism project must move the economy of the area.

This product has been working by the bank together with the Ministry of Tourism for a couple of months.

And although it was planned to present it in December, this month will already be made available to the autonomous governments.

“The idea is that they have a tourism project that will help them to economically reactivate the areas that lost a lot of money due to the blocking of roads,” Jaramillo explained.

From 2017 to date, the BDE has delivered close to $ 1.5 billion to these instances of government. Until the end of 2019, it plans to place more than $ 700 million in loans.

So far this year, about $ 500 million has already been awarded. Around 35% of the projects financed by the BDE are to provide drinking water, sanitation and solid waste management in the provinces and another 40% is for rural roads.

Source: https://www.eltelegrafo.com.ec/noticias/economia/4/bde-creditos-patrimonio-danado