Ecuador Takes Multilateral Funds

Bogota-based multilateral FLAR has approved a 3-year loan of $514.5m for Ecuador, which will be used to finance the sovereign’s balance of payments. The loan has a one-year grace period and an interest rate of Libor plus a margin of between 3.6% and 4.0%. Last month, S&P raised Ecuador’s credit rating to B from B minus, citing the country’s growth prospects and the government’s willingness to pay debt. “The upgrade reflects the perceived improvement in the government’s willingness, as well as capacity, to service its debt due to improved financing options and higher oil production and economic growth prospects,” the agency says.