Ecuador succeeds in restructuring its debt with the People’s Republic of China

Photo: China Development Bank – 中文:国家开发银行. By: 維基小霸王. Source: CC – Wikimedia Commons.

Ecuadorian President Guillermo Lasso announced in February that he was looking to restructure the country’s debt and improve the terms of a long-term oil sales contract with Beijing. Ecuador reached an agreement with Chinese banks to provide about $1.4 billion in debt relief through 2025, according to an official statement from the Ecuadorian government.

Reportedly, it reached agreements with the China Development Bank and the Export-Import Bank of China on loans of US$1.4 billion and US$1.8 billion, respectively, to extend the loan term and reduce amortization. The agreements also involve the release of a certain amount of exports to the Chinese oil company PetroChina under oil-backed contracts that allow Ecuador to sell an undisclosed amount of oil at market prices.

Top headline:

América Economía: Ecuador llega a acuerdo con China para reestructurar deuda.

Find out more:

El Comercio (Ecuador)Ecuador llega a acuerdo con China para reestructurar deuda.

Primicias (Ecuador)Ecuador logra cuatro años de alivio fiscal tras acuerdo con China.