(Toronto) The Government of Canada announced Monday its intention to grant the Government of Ecuador a sovereign loan of $120 million over ten years. Negotiations must take place in this direction.
The Minister of International Development, Ahmed Hussen, explained that a sovereign loan aims to support the energy transition, promote investments in renewable energies and facilitate access to clean and reliable energy.
The loan is also intended to strengthen human rights in Ecuador by facilitating the inclusion of women and people with disabilities in the electricity sector.
The envelope would be granted in coordination with a loan program determined by the policy of the Inter-American Development Bank. It would include a climate resilience debt suspension provision that could be invoked in the event of a natural disaster, to free up crucial resources to address immediate crises.
At a Canadian Council for the Americas event held Monday in Toronto, Minister Hussen said the loan should include technical assistance of up to $6.5 million to help the government of Ecuador foster an inclusive energy sector. and universal access to clean energy.
Already, in 2021-2022, Canada had granted international aid of 17.3 million to Ecuador.