Ecuador Internacional

Ecuador, China Sign Financing Agreements Totaling $7.5 Billion

The Wall Street Journal - Mercedes Alvaro 08/01/2015

Fuente: Telesurtv

Fuente: Telesurtv

QUITO--Ecuador and China signed on Wednesday five financing agreements totaling $7.5 billion, Ecuador's Finance Minister Fausto Herrera said from Beijing.

The agreements include a $5.3 billion credit line that was announced on Tuesday to finance several projects, including irrigation and transportation works. It also includes a $1.5 billion agreement with the China Development Bank to finance part of Ecuador's 2015 investment plan and $400 million with the Bank of China for the construction of schools.

Mr. Herrera said in a press release that much of the funding deals were reached with "concessional terms, confirming the good strategic relationship between Ecuador and the Asian nation." The statement didn't provide further details.

"The confidence expressed by the Chinese government is based on the stability and strength in handling the economic policy of Ecuador, despite the adverse effects or external shocks due to low oil prices," Mr. Herrera added.

Mr. Herrera is part of an official delegation led by President Rafael Correa that is visiting China to strengthen trade, economic and political relations between the two countries.

China, seeking to secure energy supplies, has become the largest source of financing for Ecuador, after the Andean country defaulted on $3.2 billion of its global bonds in 2008.

According unofficial estimates, China has committed more than $12 billion in financing to Ecuador between 2009 and 2014, including a loan of $1.7 billion for the Coca Codo Sinclair hydroelectric plant.

Most of the financing has been tied to oil. Currently, Ecuador sells about 90% of its crude oil to China.

Last year, a report from the Global Economic Governance Initiative, which is linked to Boston University, said that China had loaned about $102 billion to Latin America from 2005 to 2013.

Write to Mercedes Alvaro at

Fuente Original