Ecuador and Spain agree that CAF manage US$50-million debt swap with Spain

The Program National Committee, represented by the Ecuadorian Foreign Minister, Francisco Carrión Mena, and the representative of the Spanish Ministry of Finance, Ramón Guzmán Zapater, today formalized the decision to select the Andean Development Corporation (CAF) as manager of the Ecuador-Spain Fund. The choice is based on CAF’s experience in supporting the development of Ecuador and the conviction that the actions of the multilateral organization will generate efficiency and effectiveness for the Fund. The agreement was signed in the Ecuadorian Foreign Ministry in Quito.

In March this year the governments of both countries signed the "Program for Debt Conversion into Public Investments" which formed the Ecuador-Spain Fund, with a capital US$50 million, derived from 100% of the contributions of Ecuadorian government to service its debt with Spain.

The debt swap for social investment is an innovative instrument that Spain is promoting to invest in Latin America and support economic growth and social development in the region. In particular, the Ecuador-Spain Fund is destined to finance Clean Development Mechanism (CDM) and education projects.

The joint stimulus that Ecuador and Spain are developing with technical assistance from CAF is a challenge for improving the effectiveness of projects and programs that are financed with these funds. The aim is to reach the beneficiaries directly who then become agents for change in the life of the people.

The respective governments established a realistic two-month timetable for completion of the selection phase of the projects. CAF can be relied on for maximum response in the finalization of the projects under study.