World Bank grant important loan to Ecuador

The executive board of the World Bank granted a loan of 700 million dollars in favor of Ecuador, with the objective that the country allocate resources to support the fight against Covid-19, promote economic growth, job creation and climate resilience.

The loan is variable rate, repayable in 16.5 years and has a grace period of 5 years. The approved credit is the first of three loans that will allow the Guillermo Lasso Administration to continue implementing policies to address structural challenges that will allow it to achieve fiscal sustainability, promote job creation, and protect the most vulnerable groups. in addition to strengthening low-carbon development and achieving carbon neutrality by 2050.

“This operation reflects the decisions that Ecuador has taken to create opportunities, generate employment, guarantee transparency and fiscal sustainability with equity, and promote climate action,” said the Minister of Economy and Finance, Simón Cueva.

The resources will be divided into two pillars. The first will be to support the government’s actions in terms of inclusive, transparent and ecological fiscal management, in addition to promoting growth and job opportunities in the country. The second pillar is based on actions that allow the participation of the private sector in the financing of non-conventional renewable energies.

The director of the World Bank for Bolivia, Chile, Ecuador and Peru, Marianne Fay, explained that the pandemic left many consequences for the development of the countries. In this scenario, governments “have to face these challenges by thinking of solutions that allow sustainable growth while protecting those who need it most.”

K. Tovar

Source: APNews