Ecuador announced on Monday night that it reached a debt relief restructuring agreement with Chinese banks worth $1.4 billion until 2025, as Beijing increasingly offers bailouts to countries at risk of financial crises, reports the Financial Times.
The government of center-right president Guillermo Lasso said it had reached agreements with the China Development Bank and the Export-Import Bank of China (Eximbank) worth $1.4 billion and $1.8 billion, respectively. The deals will extend the loans’ maturity and reduce interest rates and amortization.
Overall, these agreements will provide $1.4 billion in debt service relief as repayments to the China Development Bank will be reduced by more than $745 million over the next three years and repayments to China Eximbank will be reduced by about $680 million to 2025.