FLAR Attaches Strings To $416 Million Ecuador Loan

The Bogotá-based Latin American Reserve Fund (FLAR), has attached conditions to the $416 million four-year loan it is extending to Ecuador to help that country improve its fiscal accounts. FLAR has said that Ecuador’s primary spending of its non-financial public sector must not exceed 7% of GDP in 2006 and 5% in 2007, 2008 and 2009. The short-term loan from the fund will allow Ecuador to consolidate its short-debt obligations on better terms. FLAR is an adjunct of the six-member Andean Community and aims to support the financial accounts of its member countries.