This content was published on 10 September 2021 – 21:02
Quito, Sep 10 (EFE) .- The development bank of Latin America-CAF approved a loan for 250 million dollars to Ecuador in order to “support government policies and help stabilize the economy,” the entity reported this Friday. it’s a statement.
The CAF highlights that the new loan was approved “after the deep recession caused by the health emergency generated by the COVID-19 pandemic, which led to a rebound in poverty and amplified macroeconomic imbalances.”
The resources will be focused in this sense “to facilitate a framework for the organization of initiatives related to improving competitiveness for sustainable economic development and inclusive and supportive growth”, as well as to “strengthen the social protection system oriented to the sectors mostly affected in their subsistence economy. “
Likewise, to support “the sustainability of public finances and guarantee a sustainable trajectory of the debt that helps to consolidate confidence in macroeconomic stability and the consolidation of the dollarization regime.”
Since 2019, Ecuador has been going through a period of lack of liquidity in its public coffers that has been aggravated by the consequences of the coronavirus pandemic.
This Wednesday, the IMF announced that it managed to reach a technical agreement with the new government in Ecuador, headed by Guillermo Lasso, for new loans, which also opened the door to loans from other entities for a total of 4,500 million.
“From CAF we are implementing lines of action to accompany the countries of the region to mitigate the socioeconomic effects of the pandemic” of the covid-19, said Sergio Díaz-Granados, executive president of CAF, according to the statement.
And he adds that, in the case of Ecuador, “this new support will allow expanding the coverage of social assistance programs, guaranteeing the reactivation of production with social inclusion and fiscal sustainability, as well as strengthening dollarization to lay the foundations for lasting growth that benefit all Ecuadorians. “
CAF’s strategy in Ecuador has among its priorities the consolidation of the sustainability of the economic system, the promotion of productivity and competitiveness for growth with equity and social inclusion.
During the 2016-2020 five-year period, CAF approved credit and technical cooperation operations to Ecuador for a total of 4,380 million dollars.
Likewise, in the same period, total disbursements amounted to 3,707 million dollars and the portfolio of the Andean country at the end of August 2021 reached a total of 3,859 million dollars. EFE
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