The people of Ecuador are rising up to refound their country as a pluri-national homeland for all. This inspiring movement, with Ecuador's indigenous peoples at its heart, is part of the revolution spreading across the Americas, laying the groundwork for a new, fairer, world. Ecuador Rising aims to bring news and analysis of events unfolding in Ecuador to english speakers.

Friday, March 06, 2009

Ecuador plans to invest $800 mln in local banks

QUITO, March 3 (Reuters) - Ecuador plans to invest around $800 million in its financial sector to jumpstart an economy reeling from low oil prices, Economic Policy Minister Diego Borja said on Tuesday.

Fernando Pozo, the head the private banks association, said after a meeting with Borja that the financial sector and government will together seek alternative credit lines from abroad.

"The amount is about $800 million this year," Borja said when asked how much the government planned to invest in the sector.

The government's investment could come from the country's foreign reserves and should enable banks to extend more credit to clients, Borja said.

The move will also help the system's liquidity, which he described as "stable."

Ecuador is pushing for banks to hand out more loans to the poor and middle class to boost an economy that has seen key exports like flowers and shrimp plummet due to the global crisis.

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