EIB Vice-President visits Ecuador: EU bank reaffirms its support for sustainable economic growth

23 November 2018

EIB Vice-President visits Ecuador: EU bank reaffirms its support for sustainable economic growth

A delegation from the European Investment Bank (EIB) led by Vice-President Emma Navarro is on a two-day visit to Ecuador to reaffirm the EU bank’s commitment to maintain its support for projects promoting sustainable development in the country.

To this end, Emma Navarro held meetings with President of Ecuador Lenín Moreno, Vice-President Maria Alejandra Vicuña and Minister of Economy Richard Martínez to analyse the close working relationship between the EIB and Ecuador. The EU bank delegation also met with various international financial organisations operating in Ecuador to pool efforts and strengthen partnerships in the country.

Ecuador is among the biggest beneficiaries of EIB financing. Since the EU bank started working there in 2006, it has provided over EUR 700m to finance investments with favourable conditions – in terms of both maturity and interest rates – with the aim of improving the quality of life of Ecuadorians. The financing came with EU grants of up to EUR 18.6m to promote the development of EIB-supported projects and make their financial conditions more favourable.

Ecuador is also the first Latin American country to receive EIB funds to finance education projects. In concrete terms, this comprises EUR 70m provided by the EU bank to build and fit out 15 technical and technological institutes across the country to strengthen the dual professional training system, a key element of supporting human capital development in Ecuador, meeting the needs of the labor market.

This financing was granted under the Latin America lending mandate 2014-2020, meaning that it is covered by the EU budget guarantee. The EIB signed an agreement with the Ministry of Economy and Finance of Ecuador, constituting a major step forward in implementing this development plan for technical and technological institutes. In addition, the project is benefiting from a EUR 11.6m grant from the European Union’s Latin America Investment Facility (LAIF) to build an institute in the Portoviejo area, as part of reconstruction efforts following the 2016 earthquake. The EIB Vice-President also signed an agreement with EU Ambassador to Ecuador Marianne Van Steen under which EU bank will supervise the use of this grant. Vice-President of Ecuador María Alejandra Vicuña attended the signing ceremony, demonstrating her support for this project.

During her visit, Emma Navarro highlighted “the EIB’s commitment to continue working with Ecuador to foster sustainable and inclusive growth in the country. The aim of our financing is to help develop key social and economic infrastructure and combat climate change. Our support for the reconstruction programme following the 2016 earthquake and the construction of the Quito metro are clear examples of our priorities.” 

One of the stops on the EIB delegation’s Ecuador visit is to see how work is progressing on the first line of the Quito metro, a project financed with a EUR 240m loan from the EU bank aiming to foster environmentally friendly economic growth. Helping to combat climate change is one of the priorities of the EIB, which provides more funds for climate action than any another institution.

Original source: EIB
Published on 22 November 2018