Economics
IMF’s Woes in Latin America Set to Grow After Ecuador Vote
- Ecuador on path to renegotiate with fund, following Argentina
- Likely candidates heading to run-off both criticized the IMF
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The International Monetary Fund risks having to renegotiate its second multi-billion dollar loan in Latin America in as many years following Ecuador’s presidential election.
The candidates who likely advanced to a runoff vote in the Andean country, Andres Arauz and Yaku Perez, have both criticized the tax increases and spending cuts required as part of a $6.5 billion loan signed with the lender last year. Their comments are reminiscent of remarks made by Argentine President Alberto Fernandez, who began talks to restructure IMF loans after sweeping to power in 2019.