US$100-million loan approved to support economic program in Ecuador

To contribute to the support that the international financial community is granting to the new economic program proposed by the new Ecuadorian administration, the Andean Development Corporation (CAF) today approved an operation for US$100 million for a 10-year term and two-year grace period.

CAF executive president Enrique García said that with this operation the multinational development bank is contributing to the effort to reinforce the viability of the economic program, strengthen governance in the country and support the financial system, which has obtained assistance from the International Monetary Fund and other multilateral organizations.

The operation is linked to the agenda of reforms in fundamental areas which the CAF is implementing through technical cooperation programs, the Andean Competitiveness Program and the Governance Program, among others, as well as aspects related to the domestic financial sector.

The economic program designed by the Ecuadorian authorities consists of three fundamental working areas: physical strengthening, structural reforms and social compensation measures. All the areas come within the framework of the new administration’s overall guidelines for action to fight corruption, reduce poverty, promote competitiveness and productivity, increase internal security and prepare for possible entry into the Free Trade Area of the Americas (FTAA).

The CAF maintains an excellent relationship with Ecuador as revealed in the increase in the portfolio to US$1.12 billion, which is 18% of the total portfolio managed and administered by the Corporation.