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The World Bank approves a $700 million loan to Ecuador
Posted On 02 Feb 2022
The Executive Board of the World Bank approved this February 1, 2022, a freely available loan for $700 million for Ecuador, the agency reported in a statement.
The entity issued a statement on February 1, 2022, in which the approval of the credit is reported.
According to the entity, these resources will serve to support the government’s efforts to mitigate the impact of the COVID-19 crisis and promote growth, inclusion, job creation and climate resilience.
The approved operation is the first in a series of three loans that will allow the Ecuadorian government to continue implementing policies to address structural challenges that will allow it to achieve fiscal sustainability, promote job creation and protect the most vulnerable people, as well as strengthen low-carbon development and fulfill the commitment made by the country to achieve carbon neutrality in 2050, said the World Bank.
“This operation reflects the decisions that Ecuador has taken to create opportunities, generate employment, guarantee transparency and fiscal sustainability with equity, and promote climate action,” said the Minister of Economy and Finance, Simón Cueva, according to the multilateral statement.
This new financial operation has two destinations. The first: will support the Government’s actions aimed at promoting more inclusive and resilient fiscal management through inclusive, transparent and ecological tax collection; promote growth and job opportunities by reducing trade barriers and labor market rigidities, and strengthening mechanisms to support the most vulnerable groups, such as people in the bottom decile of the income distribution and children with malnutrition.
The second objective is to support actions that allow the participation of the private sector in the financing of non-conventional renewable energies.
“The COVID -19 pandemic has left many consequences for the development of countries. Today, governments have to face these challenges by thinking of solutions that allow sustainable growth while protecting those who need it most”, said the World Bank Director for Bolivia, Chile, Ecuador and Peru, Marianne Fay.
