The Ministry of Economy and Finance has announced that Ecuador will return to international markets after a seven-year absence, following approval from the Debt Committee. The last time Ecuador issued bonds was in 2019.
According to the ministry, re-entering international markets is important for an emerging economy like Ecuador. It allows access to external financing, creates opportunities to diversify the economy, and can improve governance. The move is also expected to free up resources for public investment in health, infrastructure, equipment, and other projects.
“In less than two years the Government of President Noboa has taken concrete steps to rebuild confidence in international markets by ordering fiscal policy, strengthening transparency and demonstrating capacity to assume and fulfill commitments,” the ministry stated.
The operation aims to reduce external debt service payments until 2035 by improving payment terms. This is intended to build trust with international markets and provide funding for necessary public works and services.
“This is a milestone that rebuilds investor confidence in the Ecuadorian economy thanks to responsible management of public finances,” said the ministry. They noted that previous decisions had damaged credibility through episodes of non-compliance and restructurings that increased external financing costs.
