06 July 2012

ECUADOR : Quito Asks For $515 Million Loan...As Oil Price Slumps.


     The sagging price of oil is sweet for drivers...but sour for petrol dependent social programs.
     That's why President Correa is asking for a $515 million loan from the Latin American Reserve Fund.
     If approved...Quito will pay between 3.6% - 4% over the 3-month Libor rate.
     Correa hopes to avoid another liquidity crisis...like 2008-09...when Ecuador defaulted on $3.2 billion in loans.
     Oil accounts for 41% of Quito's revenues.
     It may also seek help from China.