02/12/2020 Lenín Moreno during a visit to the White House
SOUTH AMERICA ECONOMY INTERNATIONAL ECUADOR
JIM LOSCALZO / ZUMA PRESS / CONTACTOPHOTO
(Jim Loscalzo /)

MADRID, 16 (EUROPA PRESS)

The president of Ecuador, Lenín Moreno, announced on Wednesday a new agreement between the Andean country and China to restructure a section of debt with the banks of the Asian country for an amount that amounts to 891 million dollars (754 million euros).

This has been communicated by the president through his Twitter account, where he has indicated that the debt with the Chinese bank Eximbank has been reprofiled for said amount.

For its part, the Ministry of Finance indicated that the agreement with the financial entity would allow a financial relief of 474 million dollars (401 million euros) during the remainder of 2020 and 2021.

This financial reorganization is in addition to the one achieved with China Development Bank (CDB) on August 5, by which it was agreed that Ecuador would not have to make payments during the next twelve months for 417 million dollars (353 million euros).

Together, the capital relief of both operations reaches 891 million dollars (754 million euros).

« This is one more step within the virtuous circle of trust that the international community has placed on Ecuador and, in this particular case, on bilateral partners such as China, » said Ecuadorian Finance Minister Richard Martínez.

The new agreement allows the rescheduling of principal payments corresponding to the four largest loans in Eximbank’s loan portfolio, which represent 84.2% of the total debt, and which financed the projects Coca Condo Sinclair, Paute-Sopladora, Minas -San Francisco and 500 Kw Transmission Line.

The South American country expected repayments of 158 million dollars (133 million euros) in the remainder of the year and 316 million dollars (267 million euros) in 2021 for the four loans to Eximbank. With the restructuring, these payments are reduced to zero during the period, with another 16-month grace period in the capital, without the original conditions being altered.

With all this, principal payments will resume in March 2022, and will be distributed proportionally throughout the term of the four loans to be matured, that is, between 2025 and 2029.