The Inter-American Development Bank (IDB) has approved a $500 million loan to enhance Ecuador’s macroeconomic stability by bolstering its fiscal sustainability and stabilizing its money market.
The Program to Support Macroeconomic Stabilization in Ecuador, which has been approved by the IDB’s Board of Executive Directors, will help cover the country’s short-term lending needs and stabilize its economy, safeguarding its social protection programs. The operation will support the Government's efforts in its program with the International Monetary Fund (IMF).
This program, under the Special Development Lending (SDL) modality, is structured as a single loan operation to be disbursed in two tranches.
The $500 million loan has a seven-year repayment period, a three-year grace period, and an interest rate based on SOFR, plus 1.15%, plus the margin applicable to IDB loans financed with ordinary capital.
About the IDB
The Inter-American Development Bank (IDB), a member of the IDB Group, is devoted to improving lives across Latin America and the Caribbean. Founded in 1959, the IDB works with the region’s public sector to design and enable impactful, innovative solutions for sustainable and inclusive development. Leveraging financing, technical expertise and knowledge, it promotes growth and well-being in 26 countries.
Molina Medina,Vanessa Carolina
Cavelier,Andres
Ecuador and the IDB
The Country Office of Ecuador aims to provide effective, innovative support for the government’s development program by seeking promotion of public-private partnerships (PPPs) as a vehicle for investment, leveraging of the equity market through thematic bonds and guarantees, and productive development of Ecuador’s Amazon region.
Program to Support Macroeconomic Stabilization
Facilitate the macroeconomic stability of Ecuador. The specific objectives are: (i) strengthen fiscal sustainability while safeguarding social protection; and (ii) strengthen the stability of the money market.