Last week DFC announced that it signed a framework agreement with the government of Ecuador to refinance up to $3.5 billion of the country’s external debt to China. In exchange, according to reporting by the Financial Times, the Ecuadorian government will commit to exclude Chinese companies from its telecom networks.
CGD Policy Blogs
Let’s unpack our arguments for why a debt standstill would be the wrong move for IDA at this point in time.
Calling All Official Bilateral Creditors to Poor Countries: Switch to IDA Concessional Terms as Part of COVID-19 Response
Overall public debt in IDA countries has risen rapidly since before the global financial crisis; and while debt to private creditors (mostly in the form of bonds or bank loans) has increased, the biggest increases have come from multilateral and official bilateral credits.