Ecuador gets $900m from IMF (fwd)

[Robert Weissman <rob@essential.org>]

Ecuador announces 900 million dollars from IMF
Date: Sat Aug 28 03:20:03 CDT 1999

   QUITO, Aug 28 (AFP) - Ecuador will receive 900 million dollars in loans
from the International Montetary Fund (IMF) to support government economic
plans, President Jamil Mahuad announced.
   The money will go to support Mahuad's own 1.8 billion-dollar plan to kick
start the South American nation's economy, the president said late Friday in
a national address broadcast on
television and radio.
   Part of the funds will go towards social, health and rural development
programs, and education for the poor, Mahuad added.
   Ecuador will receive 400 million dollars from the International Monetary
Reserve to help stabilize the country's currency against the US dollar, he
said in his 20-minute speech to the nation.
   Another 500-million-dollar credit will be used to reactivate the
country's economy and strengthen Ecuador's banks, Mahuad said.
   "For the first time in the country's history we have achieved a social
clause in an agreement with the IMF, which before was never even discussed,"
the president said.
   "With this money we can now guarantee the wages and salaries of teachers,
doctors and police," he said.
   Ecuador's public debt of 13.12 billion dollars equals 92 percent of its
yearly gross national product and to more than 1,000 dollars for each of the
country's 12 million inhabitants, according to the Central Bank.
   Ecuador owes 3.51 billion dollars to international financial
organisations, including 1.8 billion to the InterAmerican Development Bank.
   Quito also owes 2.35 billion dollars to foreign governments, including
1.03 billion to the Paris Club. And to foreign banks, Ecuador owes 6.73
billion dollars.