Ecuador in talks for $1.7bn loan from Beijing

Ecuador is negotating a US$1.7 billion loan from the China Development Bank, adding to its US$7.3 billion in debt commitments, including loans, advance payments for oil sales and energy project financing, that it already owes to Beijing, Reuters reported, citing an announcement by Educadorian President Rafael Correa on Saturday. Since excluding itself from debt markets by defaulting on US$3.2 billion in global bonds three years ago, Ecuador has met its financing needs through bilateral agreements, mostly with China. The South American country signed a US$2 billion credit deal with China in June and took a US$571 million loan from a Chinese bank in October. Ecuador depends on crude exports to fuel its economic growth; high oil prices in recent years have allowed Correa to boost spending on hospitals, roads and schools, strengthening his support among the country’s majority poor.