Economics
Ecuador Seeks Liquidity Loan as Correa Loses Oil Funding
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Ecuador is seeking a $515 million loan from the Latin American Reserve Fund to shore up liquidity as falling oil prices leave President Rafael Correa looking for new ways to fund spending.
FLAR, as the Bogota-based stability fund is known, approved the loan equal to 13 percent of Ecuador’s international reserves to allow the government to finance its balance of payments, the Finance Ministry said in a statement yesterday. The three-year loan carries an interest rate between 3.6 percentage points and 4 percentage points over the three-month Libor rate. The ministry didn’t say when the funds would be disbursed.