Saturday, July 9, 2016

Ecuador receives $364M loan from IMF

The IMF is lending without conditions the sum of 364 million dollars to Ecuador, he said Friday. The sum must help  Quito to meet the costs to rebuild after the earthquake of April 16 that devastated part of the Latin American country.
The earthquake made 659 deaths and left many more wounded and homeless. It “caused significant casualties and damage in infrastructure, real estate and agriculture,” said Zhu Min, deputy director of the IMF, in a statement.
The damage caused by this earthquake, the worst in Latin America since that of Haiti in 2010 were valued at $ 3 billion. An amount that has forced the authorities to increase VAT and to seek the help of international donors.
Ecuador will benefit from 364 million dollars from International Monetary Fund through a credit mechanism that does not require, in return, the implementation of economic reforms, the statement of the IMF says. Ecuadorian President Rafael Correa will thus not be held accountable to an institution that has often been criticized for its rigorous measures. Following the economic crisis of the past decency, many have called on the abolition of the IMF.
In its statement, the IMF has however called on Ecuadorian authorities to address “imbalances” and “vulnerabilities” of the country’s economy. “Measures are needed to safeguard financial stability and ensure sufficient liquidity in the banking system,” detailed Mr. Zhu. The country already suffers from low oil prices and the rise of the US dollar, he recalled.
After the earthquake, the World Bank had already promised a loan of $150 million to provide medical facilities.
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