World Bank will disburse $ 400 million

Ecuadornews:

The representative of the international body committed to continue supporting the country in a meeting held with President Lenin Moreno.

The World Bank (WB) plans to expand its investment portfolio in Ecuador to $ 1,400 million, according to Alberto Rodríguez, director of the international organization for Bolivia, Ecuador, Peru and Venezuela, on Tuesday, June 19, after a meeting with the President of the Republic, Lenin Moreno.

At the meeting, the president stressed that the country seeks to rebuild relations with the multilateral organization “that were not the best in the last decade” and stressed that Ecuador needs the support of the WB to achieve the goals of the Government, aimed at social development and economic.

Rodríguez pointed out that the World Bank has as fundamental motors the eradication of poverty and the promotion of equality and equity, for which it committed its support to the country. In this regard, he noted that the current portfolio of financial investments in Ecuador is approximately $ 1,000 million, but is expected to be expanded to $ 1,400 million until next Friday, for an additional investment that would be used to build the Quito Metro and to water plants in Guayaquil.

The Minister of Economy and Finance, Richard Martínez, also participated in the meeting, who highlighted that the approach of the multilateral organizations is based on the presentation and transparency of the economic figures of the country carried out by a delegation in Washington, United States.

The Secretary of State referred to the debt needs currently required by the country and said that they amount to $ 11,000 million. “The General State Budget approved a level of indebtedness of $ 8,250 million and additional sources will come from several international organizations, such as the Latin American Reserve Fund, and also from private investors,” said Minister Martínez.

In this regard pointed out that of these $ 11,000 million, about $ 5,000 million have already been executed. There is another $ 5 billion in an advanced negotiation process and “there is still a residual part, whose source is yet to be identified,” but he assured that this section is under control. “The urgent economic bill sent to the Assembly will allow us to have room for maneuver in terms of indebtedness, because in the stabilization part we have a margin to overcome the 40% debt ceiling, until we achieve convergence in the medium term “, Assured the State official.

On the other hand, the minister explained that there are several factors that explain the increase in country risk in several Latin American countries and that configure an unfavorable scenario, such as highly volatile markets, a possible trade war between the United States and China, the appreciation of the dollar against to other currencies.

“Given this, Ecuador is on the right track and therefore we visit international markets, we are approaching with dialogue mechanisms that should crystallize on results,” said Martinez.

Added to these actions the possible approval of the economic bill that, according to the Minister, will give clarity on the process of fiscal stability for these three years.

Opening 

Support in projects

The World Bank currently has an investment portfolio in Ecuador of about $ 1,000 million that is destined to several projects in sectors related to roads, sanitation and drinking water, agriculture.

12 years passed for an official meeting between the Government of Ecuador and the World Bank.

The rapprochement of Ecuador with the World Bank is part of a policy of openness to multilateral organizations. (I)

Source: https://www.eltelegrafo.com.ec/noticias/economia/4/banco-mundial-desembolso-ecuador