Ecuador Gets Multilateral Cash for Deficit

Bogota-based multilateral FLAR has agreed to lend Ecuador $480m to help it cover its fiscal deficit for 2009, Ecuador’s Central bank says. Ecuador, which defaulted on its 2012 and 2030 bonds last year, will pay Libor plus 400bp on the 3-year loan that features a one-year grace period. The funds will be fully disbursed on Monday. The sovereign is seeking a total of $1.5bn from multilaterals to cover budget needs.