Announcement of Ecuador Signs Important Loans on January 15, 1986

\ INTERNATIONAL MONETARY FUND , . FOR IMMEDIATE RELEASE JOINT LIBRAR'{ ' ' I / JArl 2 8 986 World Bank 1818 H Street , '-< W.. Washington . D C. 20 433 , US.A . • INTERNATlONAL BANK FOR RCCONSTRUCTJON AND DEVELOPMENT WASHINGTON, D. C , 2043! Teleph one: (202 ) 477-1234 BANK NEWS RELEASE Contact: Ciro Gamarra January 15, 1986 (202) 477-5320 ECUADOR SIGNS IMPORTANT LOANS The World Bank today announced the signing of two l ans, amounting to $106 million, to enhance the economic growth prospects of Ecuador. The loans were signed in Washington, D.C. in the presence of Ecuador's President Leon Febres Cordero. Ecuador -- a highly indebted country is undertaking a far-reaching program of growth oriented adjustment and these World Bank loans are the first of a series designed to support the Government's efforts. Further sectoral loans are under consideration to support other elements of Ecuador's adjustment prog rams and the successful implementation of the nation's growth oriented strategies will be supported by a substantially expanded World Bank lending progr am. Ecuador will use a $100 million loan to support a program of policy reforms in the agricultural sector and a $6 million loan to improve the management and efficiency of public investment. Loan documents were signed here by Mr . Francisco Swett, Ecuador's Minister of Finance and Public Credit and by Mr . Ra iner B. Steckhan, World Bank Programs Director, Latin America and the Caribbean Region. The $100 milli on loan si gned today will finance imports of fertilizer, agricultural machinery , trucks, storag e and transportation equipment at a time when the Government has decided to liberalize prices; reduce tariffs and quantitative restric tions to agricultural trade and cut its participation in selected public or mixed enterprises. These reforms -- many alread y undertaken -- are essential to the growth of agricultural production and exports . The $6 million loan signed today will provide technical cooperation as the Government seeks to make better use of scarce financial and human resources as it improves management in the public sector. Increased public savings and more effic ient operations of public sector entities are vital for the success of Ecuado r's efforts to accelerate growth and reduce the burden of external debt. NOTE : Mone y figures are expressed in U.S. dollar equivalents.