China and Ecuador are on the verge of inking a US$1bn loan deal, according to the Wall Street Journal. The deal will help the South American country develop its telecommunications, oil and energy industries. According to the WSJ, the loan will have two…
China and Ecuador are on the verge of inking a US$1bn loan deal, according to the Wall Street Journal. The deal will help the South American country develop its telecommunications, oil and energy industries. According to the WSJ, the loan will have two tranches comprising one for US$800m and another for US$200m.
The funds will be used to finance Ecuador’s investment program for infrastructure and to cover a budget deficit of more than US$4bn in 2010. The financing is in addition to a US$1.7bn loan from the Eximbank of China for the construction of a 1,500 megawatt hydroelectric plant, said AFP.
The loan could help Ecuador’s telecoms industry to buy equipment from telecoms equipment manufacturers such as Huawei and ZTE. Huawei was not available for comment by press time.
