UPDATE 1-Ecuador has no plans to issue new debt in the short term, president says

  • 9/22/2021
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(Adds background, quotes) NEW YORK, Sept 21 (Reuters) - Ecuador has no plans to issue new debt in the short term because it has plenty of resources available through International Monetary Fund financing, President Guillermo Lasso said on Tuesday. The cash-strapped Andean nation last year struck a $6.5 billion deal with the IMF, and in early September reached a new staff-level agreement here that could result in $1.5 billion in new disbursements this year. Lasso, a conservative ex-banker who took office in May, has pledged to halve the fiscal deficit here“With the agreement we reached with the IMF, we will for now have enough resources to finance the government budget,” Lasso told reporters in New York, where he is attending the annual meeting of the United Nations General Assembly. “So we’re not going to flood the market with Ecuadorean bonds because I don’t think that would be fair play with holders nor with the government.” Lasso aims to cut the fiscal deficit in half to $2.4 billion in 2022 through austerity measures such as layoffs of state workers. He has also promised to double output of crude oil, Ecuador’s main export and a large source of government revenue, to 1 million barrels per day by the end of his term. He faces opposition from indigenous groups and social movements over cuts to fuel subsidies. His predecessor, Lenin Moreno, walked back a plan to raise fuel prices in 2019 in the face of massive protests. Lasso said he is evaluating how to better target the subsidies, arguing that many people who currently benefit from them do not need state assistance. (Reporting by Rodrigo Campos in New York and Alexandra Valencia, Writing by Brian Ellsworth and Luc Cohen, Editing by Karishma Singh)

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