IDB Approves $500 Million Loan to Support Ecuador’s Macroeconomic Stabilization

The program is designed under the IDB’s Special Development Lending (SDL) modality and will be disbursed in two tranches.

The Inter-American Development Bank (IDB) has sanctioned a $500 million loan aimed at enhancing Ecuador’s macroeconomic stability by improving fiscal sustainability and stabilizing the money market. This decision, made by the IDB’s Board of Executive Directors, is set to support Ecuador’s short-term lending needs and stabilize its economy, while safeguarding social protection programs.

Program Details

The loan is part of the Program to Support Macroeconomic Stabilization in Ecuador and will assist the country in its efforts to implement its program with the International Monetary Fund (IMF). The program is designed under the IDB’s Special Development Lending (SDL) modality and will be disbursed in two tranches.

Loan Terms

Amount: $500 million

Repayment Period: Seven years

Grace Period: Three years

Interest Rate: Based on the Secured Overnight Financing Rate (SOFR) plus 1.15%, with the addition of the applicable margin for IDB loans financed with ordinary capital.

This financial support aims to bolster Ecuador’s fiscal management and economic stability, providing a foundation for sustained growth and development.