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Add to Preferred SourcesThe World Bank’s Board of Executive Directors approved a US$500 million credit and US$14.1 of non-reimbursable resources from the Global Concessional Financing Mechanism (GCFF) to support Ecuador’s economic recovery.
The resources will help the Government support those families most affected by the COVID-19 pandemic, as well as strengthen policies to eliminate constraints to private sector development and promote economic recovery. The financing will also support enhanced public sector efficiency and public finance sustainability during the crisis.
“From the onset of the pandemic, the World Bank has worked closely with the Government of Ecuador to provide the means to confront and mitigate the impact of COVID-19, particularly for the most vulnerable families,” said Marianne Fay, World Bank Director for Bolivia, Chile, Ecuador, and Perú. “We have mobilized new resources and restructured projects underway to focus on the needs arising from the pandemic.”
The loan approved is the third in a series of programmatic financial operations supporting inclusive and sustainable development policies. The first in these series of loans was disbursed in June 2019 and the second in May 2020. This third operation supports the reform agenda and the country’s finances at a very complicated time for Ecuador’s economy.
These resources supplement the previous operations that were aimed at designing mechanisms to expand social protection programs and strengthen monetary transfer systems for the most vulnerable families.
Additionally, Ecuador will benefit from a US$14.1 million budgetary support grant by the Global Concessional Financing Mechanism (GCFF), which was established to support middle-income countries that have admitted a large number of refugees. These resources are recognition and support for Ecuador’s efforts help the Venezuelan migrants and refugees, as well as the communities hosting them. Last May, the GCFF also provided US$6 million to the Government of Ecuador.
Original source: World Bank