The Minister of Economy and Finance, Pablo Arosemena, assured that it is advancing talks with the International Monetary Fund (IMF) for an emergency credit for the heavy rains, earthquakes and landslides that have hit Ecuador in recent months.
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The head of the State portfolio assured EXPRESO on April 12, 2023 that talked to the IMF and the agency told them “that the doors are open.”
Arosemena pointed out that it could be obtained a “couple hundred million” of the organism, but everything will depend on the needs that the country has to follow the rains. For now, the minister said, the situation can be covered with $200 million loans from the Inter-American Development Bank (IDB) and the World Bank, which were requested in recent weeks.
“Since we successfully closed the program last year, for the first time in more than two decades, that gives us the endorsement, the credibility to say ‘oye, If I need more, I’ll ask you’ and they tell us that the door is always open”Arosemena said.
Ecuador has requested emergency loans from the IMF in previous years due to situations such as the Manabí earthquake in 2016 and the
The Finance Minister, who is currently participating in the Spring Meetings of the IMF and the World Bank, noted that financing needs remain at $7.5 billion.
Reduction of tariffs and repurchase of bonds
In a conversation organized by the IDB, Arosemena pointed out that tariffs will be lowered in the coming days, however, he did not specify which products. In addition, it is expected to execute other changes in economic matters through decrees.
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In addition, Arosemena pointed out to this newspaper that expects to complete the process of repurchasing debt bonds in the first half of this yearthrough the issuance of blue bonds.
The blue bond placement plan President Guillermo Lasso was announced in November 2021.
With the money obtained from the issuance of these bonds, the Government would repurchase a part of its own foreign debt to take advantage of the low price scenario of these papers due to the high country risk.
The money saved generated by the operation will be placed in a trust for the expansion of the reserve of the Galapagos Islands and to finance its conservation.