Ecuador—Implications of New Law to Combat Covid-19 Crisis- Bloomberg
As a result of the Covid-19 pandemic, the local Ecuadorian economy has suffered a significant hit. The Ecuadorian Country Risk has increased from around 1,400 points in the month of February 2020 to over 3,000 points by mid-June 2020. One of the most relevant indicators that has caused the fluctuation is the decrease in the price of oil.
However, the government has received support from multilateral agencies. Specifically, the country has received a total of $1.8 billion in four disbursements from the IMF, World Bank, and the Inter-American Development Bank. The interest rates of the previously mentioned operations are less than or equal to 2.5%. Grace periods are between three to six years, while payment terms vary from five to 20 years.
The government has implemented reforms to deal with an estimated reduction of 10% in GDP. According to the Central Bank of Ecuador, oil exports in the first quarter of 2020 have suffered a reduction of approximately 44%, compared to those of the same period in 2019.
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