Ecuador, IMF reach $6.5 billion loan agreement

President Lenin Moreno

The International Monetary Fund has agreed to loan Ecuador $6.5 billion to reactive the economy and to restructure other financial obligations. Calling the agreement “great news for Ecuador,” President Lenin Moreno said the money will help the country recover from the Covid-19 health crisis and regain its financial footing.

Negotiations for the loan package have been underway for four months, the president said, with the Inter-American Development Bank joining the Finance Ministry in the talks. Funds from the loan, which carries a 2.9 percent interest rate, will be disbursed over a 27-month period after technical terms are worked out between the ministry and the IMF.

Once details are resolved the deal must be approved the IMF executive board, a process that typically takes 18 days.