Agreement establishes cooperative relationship for financing of projects in the country
WASHINGTON – U.S. International Development Finance Corporation (DFC) Chief Executive Officer Adam Boehler today joined officials from the Republic of Ecuador, including President Lenin Moreno and Finance and Economy Minister Mauricio Pozo Crespo, to sign a framework agreement to refinance debt and support private sector investment in the country. Under the framework, DFC will aim to provide financing for future projects that will support development and economic growth in Ecuador.
The framework provides criteria for future investments to be considered by DFC for financing, with the proceeds supporting the refinancing of preexisting debt and development in Ecuador. Each project under the framework requires individual approval by DFC and be subject to the agency’s extensive review process and due diligence. Under the framework, up to $2.8 billion is available for projects. Loans under this framework would be directly linked to promoting sustainable economic growth. The framework also establishes a long-term cooperative relationship between DFC and Ecuador’s Ministry of Economy and Finance.
“This framework agreement allows DFC to streamline support for projects that refinance predatory Chinese debt and help Ecuador improve the value of its strategic assets,” said Boehler. “We are proud to collaborate with Ecuador to advance this critical and strategic project with an important ally of the United States in the Western Hemisphere.”
DFC is committed to supporting investment that addresses critical development challenges throughout Latin America and the Caribbean, including Ecuador. DFC’s approach to private sector-led investment offers a robust alternative to state-directed investment.
The framework supports U.S. foreign policy goals in the region and expands on DFC’s previous commitments to supporting private sector investment in Ecuador. In December, Boehler and representatives from the Republic of Ecuador signed a joint statement highlighting mutual commitment to support private sector investment in the country and build on DFC’s current portfolio.
U.S. International Development Finance Corporation (DFC) is America’s development bank. DFC partners with the private sector to finance solutions to the most critical challenges facing the developing world today. We invest across sectors including energy, healthcare, critical infrastructure, and technology. DFC also provides financing for small businesses and women entrepreneurs in order to create jobs in emerging markets. DFC investments adhere to high standards and respect the environment, human rights, and worker rights.