Ecuador and The International Monetary Fund reached an agreement for a new $6.5 billion facility to help the South American country address the economic shock caused in part by the drop in oil prices and the COVID-19 pandemic.
The agreement approved by the IMF’s executive board, helped for the already executed settlement of a $17.4 billion debt exchange between Ecuador and its creditors.
The goal of the Extended Fund Facility (EFF) agreement is to help the Ecuadorian authorities stabilize the economy and protect the lives and livelihoods of its citizens.
It is a 10 year term and 2.9% loan.
The arrangement will partly support Ecuador’s policies to extend social assistance programs and protect the more vulnerable segments of the population.
The agreement shows full support of the international business, multi-lateral entities and political community to the open, pro-democratic policy of the Ecuador Government.