A $42 million loan will improve innovation, productivity and reduce transaction costs for public service users
Ecuador will improve competitiveness through the strengthening of institutions that contribute to the business environment and productivity, with a $42 million loan approved by the Inter-American Development Bank (IDB).
The program will strengthen dialogue and coordination between the public and private sectors, contribute to the improvement of innovation and productivity of strategic productive sectors prioritized by the Competitiveness and Entrepreneurship Committee of the country and will support the regulatory quality and transparency of the environment of business.
Specifically, the development and implementation of the national competitiveness agenda, the identification and removal of obstacles to the growth of strategic sectors will be supported through the creation of executive tables and the deployment of instruments to support innovation and entrepreneurship through of competitive funds.
It will also offer technical assistance to the Ministry of Economy and Finance to support the development of a comprehensive strategy whose objective is to improve access to financing and the sustainability of micro, small and medium enterprises.
In addition, the program will improve the management of government entities, processes and assets that contribute to the productivity of the private sector, in particular the Ministry of Energy and Non-Renewable Natural Resources, the Ministry of Production, Foreign Trade, Investments and Fisheries and the Service of Public Procurement.
Finally, the program will contribute in reducing transaction costs for users of public services by financing the simplification and digitalization of procedures related to the business environment and strengthening the online service portal of the State.
The IDB loan has a repayment term of 25 years, a grace period of six years and an interest rate based on LIBOR and has a local counterpart of $5,040,000.
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.