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.

Sunday, July 26, 2009

Ecuador president: financing secured, worst over

GUAYAQUIL, Ecuador, July 24 (Reuters) - Ecuadorean President Rafael Correa said on Friday that his country's financial situation has improved, after securing $2.5 billion in loans and a $1 billion down payment for a contract to export oil to China.

Ecuador has been striving to find alternative sources of financing after defaulting on $3.2 billion worth of sovereign bonds last year, which shut the Andean country off from international capital markets.

"We've been very successful in our search for financing. And part of that financing is the ... sale of oil to Petrochina," Correa said during an interview with a local radio network.

State-run oil company Petroecuador said on Thursday that the country will receive $1 billion in early August as a forward payment for future oil sales to China.

The leftist leader said that multilateral lenders have also agreed to loan Ecuador some $2.5 billion this year.

The Inter-American Development Bank has pledged $1.5 billion, the Andean Development Corporation $500 million and the Latin American Reserve Fund $480 million, said Correa.

"The worst part of the crisis has passed," Correa said, adding that he is confident Ecuador will be one of the few Latin American countries whose economy will grow this year.

Investors have been concerned about Ecuador's ability to finance its budget after it spent an estimated $1 billion to buy the bonds it defaulted on.

Compounding the problem, Ecuador's export revenues fell sharply in the first half of the year due to low oil prices.

The government of Correa, a U.S.-trained economist, needs cash to fund the social projects that have helped him become one of the most popular leaders in Latin America.

No comments:

Post a Comment