The International Monetary Fund and the government of Ecuador have launched formal talks about a potential financial bailout for the South American country, which needs funds to cover a budget deficit and pay debt holders.
An IMF team is in the country’s capital of Quito for negotiations, the fund said Tuesday.
Ecuador needs $8.6 billion in financing this year, a gap that is expected to widen to $9.4 billion the following year, according to data from Nomura. Recent economic growth has been tepid, and Ecuador’s gross domestic product is expected to tick down this year, Fitch Ratings said last month when it lowered its outlook on the country’s debt to negative. Read more>>