Ecuador has sealed a deal with China that would see the Andean nation supply 69 million barrels of oil to Beijing in exchange for a 1 billion US dollar (5,2 milliarder DKR) advance payment.
In addition, China is offering a loan of another 1 billion dollar, Ecuadorean foreign minister Fander Falconi said.
Oil-hungry China is moving to strengthen ties with OPEC member Ecuador, part of a global trend in which the Asian giant is providing billions of dollars in financing to producer nations to guarantee energy supplies.
In late July, Ecuador signed a contract to export nearly 3 million barrels of crude oil a month to China over the next two years.
Some critics of the deal with China say the 7,25 percent interest rate is too high, amounting to about 145 million dollar, and will still leave Ecuador struggling to reinvigorate its economy as long as oil prices remain at modest levels.
“Under these circumstances, the governments revenue stream and access to credit are clearly insufficient to drive the economy into high gear”, Ramiro Crespo, head of Analytica Securities, said in a research note, adding:.
“Yet they are likely enough to keep the state from de-dollarizing and the economy from collapsing”.
Kilde: www.worldbank.org
