Those institutions are buying more and more government bonds. These purchases, together with the renegotiation of the Chinese debt, will reduce the need for more external debt in 2022.
This January 26, 2022, Simón Cueva, Minister of Economy, explained in a virtual press conference that due to three main factors there will be less need for external indebtedness during this year.
In the first place, the official stressed that there is a better fiscal situation than expected and this reduces financing needs. In 2021, the fiscal deficit It was about $350 million less than what was initially projected with the International Monetary Fund (IMF).
Secondly, Cueva stressed that, on a voluntary basis, it has been possible to place a growing number of titles, such as bonds and cetes, with the Ecuadorian financial system. In other words, banks they are becoming an important source of resources, with favorable conditions and increasingly longer terms.
“The liquidity that the financial system has in part is helping to give more credit to people, but also to finance the State”, said the minister.
Thirdly, another relevant factor to need a lower level of external debt it is the one announced renegotiation of the debt to China.
Cueva stressed that debt is in values close to $5,000 million, but in shorter maturities than other debts.
“Within the service of debt of the coming years, the obligations with China are more important than with other creditors. It seeks to achieve reasonable solutions to lengthen the terms and find more convenient financial conditions, “said the national official.
Of the total Chinese indebtedness, $2,000 million correspond to the debt trade linked to oil pre-sales. Is debt commercial is one of the most interested in renegotiating.
The goal is for deliveries of Ecuadorian crude to be much smaller, and thus leave more barrels free to be sold on international markets.
There are no problems in relations with the IMF
Faced with questions as to why the visit of the mission of the IMF to review compliance with the agreement with Ecuador, Cueva assured that everything is due to exogenous problems.
«There has indeed been a small delay, partly linked to exogenous factors. The omicron and its global spread from December to date has affected”, he asserted.
However, the Minister assured that virtual technical meetings are held practically every day to fine-tune the figures; and furthermore, he recalled that all the goals have been met without problems.
He assured that the evidence of good relations with the IMFother multilaterals and international markets is that next Tuesday, February 1, 2022, the World Bank (WB) board will approve a new loan to Ecuador for $700 million.
Likewise, there are already advanced financing lines with countries such as Japan and France, among others.
During the last few years, the Government has used, on average, almost $7,000 million of external debt to close your tax figures. Now, a little more than $5 billion will be needed. (JS)
IT MAY INTEREST YOU:
The IESS validates via the web rest certificates of up to 30 days
