Ecuador will increase its tax and customs duties to boost its economic competitiveness and improve the climate for international trade, with the help of an $84 million loan from the Inter-American Development Bank (IDB).
The funds, to be disbursed over five years, will streamline the tax and customs control operations of Ecuador’s tax and customs administrations, facilitating foreign trade.
Of the $84 million loan total, the IDB will provide $49 million and the IDB-administered Korea Infrastructure Development Co-Financing Facility for Latin America and the Caribbean will contribute the remaining $35 million. The Government of Ecuador will participate with an additional $4.53 million in local partner funds.
The financing will help digitally transform tax and customs services, combat tax evasion, tighten foreign trade controls, streamline the exchange of goods and services, and promote investment.
The $49 million IDB loan has a 23-year term, a 7.5-year grace period, and an interest rate based on the Secured Overnight Financing Rate (SOFR). The Korea Facility funds have a 25-year repayment term, with a 7-year grace period and a 1.3% annual interest rate.
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The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social, and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.
Nicaretta,Romina Tan
Gonzalez De Frutos,Ubaldo Jesus
