Date
21 August 2017
Ecuador President Rafael Correa has tripled public spending since taking office in 2007. He is seeking extra funding from overseas. Photo: Bloomberg
Ecuador President Rafael Correa has tripled public spending since taking office in 2007. He is seeking extra funding from overseas. Photo: Bloomberg

China signs US$2 bln Ecuador oil deal

Ecuador has won a US$2 billion financing deal from China backed by future crude supplies, Bloomberg reported Friday.

The government announced the China deal in an offering to bond investors last month. Under the agreement, Unipec Asia Co., a unit of China Petroleum and Chemical Corp., prepaid for oil from state oil company PetroEcuador over an unspecified period, the report said.

President Rafael Correa, who has more than tripled public spending since taking office in 2007, has said his government is seeking additional financing sources from China, the world’s biggest oil consumer after the United States.

In the past five years, Ecuador has borrowed more than US$11 billion from China. 

A US$2 billion bond sale last month was its first offering in international debt markets since a default in 2008. In May, Ecuador received a US$400 million loan from New York-based Goldman Sachs using half of its gold reserves as collateral.

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