Skip to comments.Flashback: IMF approves $4.2bn loan for Ecuador
Posted on 04/12/2019 4:11:10 AM PDT by TigerClaws
WASHINGTON - The International Monetary Fund on Monday approved a $4.2-billion, three-year loan for Ecuador, part of a broader aid package to help support the government's economic reform program.
The Washington-based lender agreed to the terms of the financing late last month, and the final approval of the IMF board on Monday releases the first installment of $652-million.
READ: IMF won't bail out South Africa: Lagarde IMF Managing Director Christine Lagarde said the aid will support the government's efforts to shore up its finances, including a wage "realignment," gradual lowering of fuel subsidies, and reduction of public debt.
"The savings generated by these measures will allow for an increase in social assistance spending over the course of the program," Lagarde said in a statement, stressing that "Protecting the poor and most vulnerable segments in society is a key objective" of the program.
Quito is expected to receive another $6-billion from the Development Bank of Latin America, the Inter-American Development Bank, the World Bank and the Latin American Reserve Fund.
WATCH: IMF's Lagarde says state capture inquiry good for SA "The Ecuadoran authorities are implementing a comprehensive reform program aimed at modernizing the economy and paving the way for strong, sustained, and equitable growth," Lagarde said.
IMF performs periodic reviews of its loans to ensure governments are following through on its policy pledge and then releases funds in installments.
The sorry is from March 2019. A month ago.
They’d’ve been really dumb to do it a day before.
That said, a multi-billion dollar bribe is gonna get noticed whenever it’s coughed up.
my thoughts exactly. quid pro quo.
I am sorry to say but since we do control the IMF, to me this is the Trump administration accepting the Liberal argument that the problems in Central America are our fault and we are going to have to “invest” in Central America to get rid of its poverty. Of course that ignores that where and why any Central American state is poor, it is corruption, crony capitalism of the elite versus free enterprise, and the regulatory & legal infrastructure that has caused the poverty - not a lack of U.S. led government loans. The billions Ecuador will now get will just go down the local money pit, create some more Ecuadorian millionaires among the masses, and that’s about it. They will be back with excuses why this set of loans did not set them straight and another U.S. government will lend them some more. Look for a new bank of loans when this one expires in 2022.
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