According to the Ministry of Economy, the IDB is providing a loan of US$ 500 million to Ecuador

Ecuador’s Finance Minister Pablo Arosemena looks on as he speaks to Reuters on Ecuador’s fiscal recovery, external debt and payment dispute with oil company Perenco, in Quito, Ecuador, August 10, 2022. REUTERS/Karen Toro/File Photo

QUITO, Aug 2 (Reuters) – Ecuador’s economy ministry said on Wednesday that the Inter-American Development Bank (IDB) had approved a $500 million loan to the South American country to support state social projects.

Ecuadorian President Guillermo Lasso has set strengthening the social project budget and an action plan against El Nino weather as a top priority for this year’s term.

The government’s fiscal policy strategy with a social focus “enhanced the trust and credibility of the international community,” said Economics Minister Pablo Arosemena.

The loan has a fixed interest rate and can be repaid in 19 years with a grace period of up to seven years, he added.

IDB did not immediately respond to a request for comment.

The Ecuadorian government has announced that it will also approach other multilateral organizations, including the International Monetary Fund (IMF), for pre-emptive lines of credit.

The country successfully secured a $6.5 billion loan deal with the IMF late last year.

Reporting by Alexandra Valencia; writing by Carolina Pulice; Edited by Brendan O’Boyle

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