IMF’s $6.5 Billion Allows Ecuador to Restructure Bonds

The International Monetary Fund agreed to lend Ecuador $6.5 billion which will allow the nation to complete a bond restructuring plan and fund its 2020 budget, Bloomberg News reported. The deal announced Friday will enable the exchange of $17.4 billion of debt to go ahead before the Sept. 1 deadline. The country had agreed with bondholders that it would seek a new IMF deal, and that the restructuring wouldn’t go ahead without one. The so-called Extended Fund Facility is a staff-level agreement subject to approval by the IMF’s board, and is repayable in 27 months, the IMF said in a statement. Under the deal, $4 billion would be disbursed before the end of the year, according to four people with knowledge of the agreement, who asked not to be named because the details aren’t public yet. The deal replaces Ecuador’s previous agreement with the IMF, which was shelved amid the pandemic. Read more