Ecuador: Hard Times Are Coming according to Economic Analyst, Opinion

Walter Spurrier Baquerizo/eluniverso.com – opinion

Hard times are coming

In its July report on Ecuador, the Monetary Fund, after dialogue with the authorities Ecuadorian and those who follow the national economy (everything in Washington or by Skype; not allowed that a mission came to the country), observes in what remains of the 2014 and 2015 “prospects are less favorable than in the past, expected a decline in the price of oil and higher medium-term interest rates in” the us. UU. “.”

We are living in the oil price. So far this month our crude oil is would be trading below $80 per barrel, which will force the authorities to budget based on lower than expected oil prices until recently.

RAISE YOUR LEVEL OF CULTURAL AWARENESS IN ECUADOR – READ THIS BOOK

Spend less, or the country is more into debt. The big lender of the Ecuador in recent years has been China, but in 2014 the net credit of China has been low (NET means subtracting outlays that repayment). This year the credit came from issuing bonds in international markets to 10 years by $2 billion and credit from suppliers to 4 years for $1 billion of the Noble Group, which would be to fund the purchase of fuels.

ECUADOR HOTELS AND LODGING

So it seems that if China is reluctant to continue funding to the Ecuador as copiously as before, the Government would resort to financial markets, with a new issue of bonds by about $5 billion. READ ARTICLE