Sunday, March 29, 2015

More Loans for Ecuador

This article from Bloomberg details several recent loans Ecuador has received from various sources – most prominently China and some major investment firms.
Ecuador got $924 million in previously undisclosed loans from Deutsche Bank AG and other lenders, showing the extent of President Rafael Correa’s effort to line up a record amount of financing as oil prices plunge. 
The country took $181 million in two separate loans from units of Deutsche Bank and obtained $125 million from the European Investment Bank, according to a prospectus prepared before the government sold bonds this month that was reviewed by Bloomberg News. Ecuador also got financing from Bank of China Ltd. and a Chinese state oil company, the document shows. 
The 50 percent drop in oil prices over the past 12 months has pushed the Andean nation’s financing needs to a record $10.5 billion this year, prompting Correa to court banks, international debt investors and foreign governments to make ends meet. Last week the country sold $750 million of bonds with a 10.5 percent interest rate, the highest for any major dollar-bond sale this year. [...] 
Included in the newly disclosed financing was a $218 million credit facility agreement with the Bank of China in November. The Deutsche Bank loans were in November and February. The European Investment Bank loan came in December. 
The government also said it received $2.4 billion in loans from Unipec Asia Co., a unit of China Petroleum & Chemical Corp., in May 2014. Last year, Ecuador had put the size of the loans at $2 billion.
There's nothing wrong with getting loans of course. Governments do it all the time (as do we individuals). The concern in this case is that these loans are being sought to cover fiscal deficits the country is facing as a result of social programs which President Correa has expanded greatly, and which are unsustainable without the income Ecuador was receiving from Amazonian oil.
The extra loans still aren’t enough to offset the decline in oil prices and a slowdown in Chinese lending, Edward Glossop, an emerging-market economist at Capital Economics in London, said in a telephone interview. The government will need more money in the second half of the year if it wants to maintain current spending levels, he said. 
A promised $1.5 billion loan from China that was expected to be disbursed in February has already been delayed twice and is now expected to be disbursed in April, Herrera said March 23. The loan amount has risen and is now expected to be $2 billion, he said. 
“These kind of piecemeal arrangements of financing from here and there are only going to take them so far,” Glossop said. “It’s not going to change the fact that they can’t sustain this level of spending.
If oil prices remain low for long, then the government will be faced with some very hard choices: either the social programs will need to be cut back (which will cause some political unrest, and cut into Correa's high popularity ratings), or the government will have to go deep into debt (possibly causing the sort of problems Venezuela is currently facing).

Of course, the parallel is far from exact – Venezuela has been on its current path longer than Ecuador has, and its problems have been visible for quite a while. Venezuela is also far more dependent on oil than Ecuador is, and thus has been hit harder by recent price drops. Most important, perhaps, is that Venezuela has its own currency, the value of which the government can manipulate. Ecuador uses the US dollar.

As the temptation to manipulate currency rises, the temptation to have a currency the government can play with to provide short-term relief from fiscal problems may become too great to resist. At that point, Correa may decide to de-dollarize Ecuador (he was opposed to the original dollarization decision, made prior to his presidency), or try to use Ecuador's new e-currency to fill any budget gaps.

Note that the above several paragraphs of speculation began with a big 'if': “If oil prices remain low for long ...”

158 comments:

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  117. We offer certified and verifiable bank instruments via Swift Transmission from a genuine provider capable of taking up time bound transactions.
    FOR LEASING OF BG/SBLCMINIMUM FACE VALUE OF BG/SBLC = EUR/USD 1MLEASING FEE = 6%+2%
    FOR PURCHASE OF FRESH CUT BG/SBLCPRICE = 38%+2%MINIMUM FACE VALUE OF BG/SBLC = EUR/USD 1M
    Our BG/SBLC Financing can help you get your project funded, loan financing by providing you with yearlyrenewable leased bank instruments. We work directly with issuing bank lease providers, this Instrument can be monetized on your behalf for 100% funding: For further details contact us with the below information.   
    Name;Stephen Donald
    Email;genericfinancialmanagementltd@gmail.com    Skype;genericfinancialmanagementl                                                                                                            

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  118. Are you having one or two difficulties from other financial instrument lender? I want you to take a chance with us you will never regret doing business deal with our firm.We have direct and efficient providers.

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  119. Are you having one or two difficulties from other financial instrument lender? I want you to take a chance with us you will never regret doing business deal with our firm.We have direct and efficient providers.

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  120. BANDENIA CONSUMER FINANCE PLC is a British based financial consulting company with years of experience in the international and local finance market. Be it lease bank guarantee, Stand by letter of credit or any type of refinancing, talk to our team at  BANDENIA CONSUMER FINANCE PLC and certainly we will set your business on the right path with our sound and quality financial advice and services. 
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    Purchase Instrument of BG/SBLC : 38%+2% Min Face Value cut =5M- 10B EUR/USD 
    Lease Instrument of BG/SBLC    : 6%+2% Min Face Value cut = 5M- 10B EUR/USD                                          DESCRIPTION OF INSTRUMENTS: 
    1. Instrument: Bank Guarantee (BG / SBLC) (Appendix A) 2. Total Face Value: Eur 5M MIN and Eur 10B MAX (Ten Billion USD). 3. Issuing Bank: HSBC Bank London, Barclays, Credit Suisse and Deutsche Bank Frankfurt. 4. Age: One Year, One Month 5. Leasing Price: 6% of Face Value plus 2% commission fees to brokers. 6. Delivery: Bank to Bank swift. 7. Payment: MT-103 or MT760 8. Hard Copy: Bonded Courier within 7 banking days.                                                                         
    Name: Lewis Wilfred
    Email: bandeniaconsumerfinance@gmail.com

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  130. GENUINE BANK GUARANTEE (BG) AND STANDBY LETTER OF CREDIT (SBLC) FOR BUY/LEASE AT THE BEST RATES AVAILABLE

    ANDERSON PROJECT FUNDING LIMITED is an authorized Financial consulting firm that work directly with A rated banks eg Lloyds Bank,Barclays Bank,HSBC bank etc We provide BG, SBLC,and lots more for clients all over the world. We are equally ready to work with Brokers and financial consultants/consulting firms in their respective countries. Our procedures are most reasonable and safest as we operate a 100% financial risk free process which entails that the issuing and receiving bank continues the transaction immediately, We offer certifiable and verifiable bank instruments via Swift Transmission from a genuine provider capable of taking up time bound transactions. We are RWA ready to close leasing with any interested client in few banking days We hope to establish a long term business relationship with you even after this first trial,

    FOR LEASING OF BG/SBLC
    MINIMUM FACE VALUE OF BG/SBLC = EUR/USD 1M
    LEASING FEE = 4%+2%

    FOR PURCHASE OF FRESH CUT BG/SBLC
    PRICE = 32%+2%
    MINIMUM FACE VALUE OF BG/SBLC = EUR/USD 1M

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    Rudolf Christian,(DIRECTOR)
    Email: projectfunding.uk.rudolf@gmail.com
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  131. We have a direct genuine provider for BG/SBLC specifically for lease, at leasing price of 4+2 of face value, Issuance by HSBC London/Hong Kong or any other AA rated Bank in Europe, Middle East or USA.

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  134. GENUINE BANK GUARANTEE (BG) AND STANDBY LETTER OF CREDIT (SBLC) FOR LEASE AT THE LOWEST RATES AVAILABLE. OTHER FINANCIAL INSTRUMENTS SUCH AS MTN, CD, DLC, PB ARE ALSO AVAILABLE. Dear Sir/Ma I am direct to a provider who has recently issued banking instruments for a couple of my clients the provider is 100% check-able you can do your due diligence on them. I personally know the provider. Our instruments are only from triple 'a' rated banks and we issue from $1M to $5B . The provider is 100% verifiable. If you are genuinely seeking bank instruments. Contact me and i will furnish you with details. And again our bank instruments can serves as collateral as the case may be, which will enable you get loans from your bank so as to embark on any projects such as Aviation, Agriculture, Petroleum, Mining, Telecommunication, Construction of Dams, Real estate, Bridges, Trading, Importing and exporting and Other Turnkey Project (s) etc. Also these instruments can be put in PPP, etc. Please do let me know of your willingness to proceed and I will email you our terms and condition upon request.Inquiries from agents/ brokers/ intermediaries are also welcome. If you are interested in seeking to raise finance for your business/projects in this way,

    Email: goldencrow59@gmail.com
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  135. Are you in need of Urgent Loan Here no collateral required all problem regarding Loan is solve between a short period of time with a low interest rate of 2% and duration more than 20 years what are you waiting for apply now and solve your problem or start a business with Loan paying of various bills You have come to the right place just
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  136. We can deliver financial services instrument(BG/SBLC/MTN/DLC/LC) at affordable price to our customers in other to derive maximum utility. We understand that finding the right company to provide financial instrument is not easy. We are certified financial company that delivers banking instrument for lease which we adhere to our terms and condition. Over 96% of our clients are satisfied with our work whether it is business or financial service.

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  137. We can deliver financial services instrument(BG/SBLC/MTN/DLC/LC) at affordable price to our customers in other to derive maximum utility. We understand that finding the right company to provide financial instrument is not easy. We are certified financial company that delivers banking instrument for lease which we adhere to our terms and condition. Over 96% of our clients are satisfied with our work whether it is business or financial service.

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  138. We offer certified and verifiable bank instruments via Swift Transmission from a genuine provider capable
    of taking up time bound transactions.

    FOR LEASING OF BG/SBLC
    MINIMUM FACE VALUE OF BG/SBLC = EUR/USD 1M
    LEASING FEE = 4%+2%

    FOR PURCHASE OF FRESH CUT BG/SBLC
    PRICE = 32%+2%
    MINIMUM FACE VALUE OF BG/SBLC = EUR/USD 1M

    Our BG/SBLC Financing can help you get your project funded, loan financing by providing you with yearly. RWA ready to close leasing with any interested client in few banking days

    Name :ivan john

    Email :psafinanceplc@gmail.com

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  139. GENUINE BANK GUARANTEE LETTER OF CREDIT(LC) BUSINESS LOAN AND STANDBY LETTER OF CREDIT (SBLC)
    AT THE BEST RATES AVAILABLE

    We offer certified and verifiable bank instruments via Swift Transmission from a genuine provider capable
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    FOR LEASING OF BG/SBLC
    MINIMUM FACE VALUE OF BG/SBLC = EUR/USD 1M-10B
    LEASING FEE = 4%+2%

    FOR PURCHASE OF FRESH CUT BG/SBLC
    PRICE = 32%+2%
    MINIMUM FACE VALUE OF BG/SBLC = EUR/USD 1M-10B

    MONETIZATION LTV 70%

    LOAN INTEREST RATE:3% OF THE TOTAL FACE AMOUNT

    Our BG/SBLC Financing can help you get your project funded, loan financing by providing you with yearly. we ready to close leasing with any interested client in few banking days
    Email : financeandstrategyltd@gmail.com
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  140. GENUINE BANK GUARANTEE (BG) AND STANDBY LETTER OF CREDIT (SBLC) FOR BUY/LEASE
    AT THE BEST RATES AVAILABLE

    We offer certified and verifiable bank instruments via Swift Transmission from a genuine provider capable
    of taking up time bound transactions.

    FOR LEASING OF BG/SBLC
    MINIMUM FACE VALUE OF BG/SBLC = EUR/USD 1M
    LEASING FEE = 4%+2%

    FOR PURCHASE OF FRESH CUT BG/SBLC
    PRICE = 32%+2%
    MINIMUM FACE VALUE OF BG/SBLC = EUR/USD 1M

    Our BG/SBLC Financing can help you get your project funded, loan financing by providing you with yearly. RWA ready to close leasing with any interested client in few banking days

    Name : Elvis roberts

    Email : Inquiry.jmfinance@gmail.com

    Skype : Inquiry.jmfinance@gmail.com

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  141. GENUINE BANK GUARANTEE (BG) AND STANDBY LETTER OF CREDIT (SBLC) FOR BUY/LEASE
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    We offer certified and verifiable bank instruments via Swift Transmission from a genuine provider capable
    of taking up time bound transactions.

    FOR LEASING OF BG/SBLC
    MINIMUM FACE VALUE OF BG/SBLC = EUR/USD 1M
    LEASING FEE = 4%+2%

    FOR PURCHASE OF FRESH CUT BG/SBLC
    PRICE = 32%+2%
    MINIMUM FACE VALUE OF BG/SBLC = EUR/USD 1M

    Our BG/SBLC Financing can help you get your project funded, loan financing by providing you with yearly. RWA ready to close leasing with any interested client in few banking days

    Name : Elvis roberts

    Email : Inquiry.jmfinance@gmail.com

    Skype : Inquiry.jmfinance@gmail.com

    WHATSAPP NO : +1(909)375-0798

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  142. Do you need a genuine Loan to settle your bills and startup

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  143. We are project funder as well as financial lender. We have BG/SBLC specifically for BUY/LEASE at a leasing price of 4%+2% of face value Issuance by HSBC London and many other 25 top AA rated Bank in Europe, Middle East or USA. We also secure funding. Also We are into the provision of short term and long term business/personal loans for both small and large scale business funds.

     FOR LEASING OF BG/SBLC

    MINIMUM FACE VALUE OF BG/SBLC = EUR/USD 1M

    LEASING FEE = 4%+2%


    FOR PURCHASE OF FRESH CUT BG/SBLC

    PRICE = 32%+2%

    MINIMUM FACE VALUE OF BG/SBLC = EUR/USD 1M

    Intermediaries/Consultants/Brokers are welcome to bring their clients and are 100% protected. In complete confidence, we will work together for the benefits of all parties involved.

    Name: Arda Baris

    Contact Mail :crystalfinanceconsulting@gmail.com

    ReplyDelete
  144. I am the sole (Direct) mandate to several genuine efficient providers for lease/sales BG/ SBLC and other financial instruments, at reasonable prices, Issuance by top AAA rated Bank in Europe.Presently, we focus on BG/SBLC for Lease and Sale transactions, However, our Lease BG/SBLC/MTN is 3+1% and Sale at 30%+1%.

    Please request for full procedure details if interested.(WE MOVE FIRST)

    For further inquiry contact:

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    Email:~inquiry.safewayfinance@gmail.com

    ReplyDelete
  145. I am the sole (Direct) mandate to several genuine efficient providers for lease/sales BG/ SBLC and other financial instruments, at reasonable prices, Issuance by top AAA rated Bank in Europe.Presently, we focus on BG/SBLC for Lease and Sale transactions, However, our Lease BG/SBLC/MTN is 3+1% and Sale at 30%+1%.

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    Email:~inquiry.safewayfinance@gmail.com

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  146. Do you need Personal Finance?
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  147. FINANCIAL AGENT LIMITED provides a full financial planning service to both the commercial and domestic markets. At IQ FINANCE PLC we believe that financial planning is about two things: creating wealth and protecting wealth. These two objectives are at the heart of everything we do. And, as a member of FINANCIAL AGENT LIMITED Services, we give you a small-company service but with a large-company set up – the best of both worlds.  
    You are at liberty to engage our leased facilities into trade programs as well as in signature project(s) such as Aviation, Agriculture, Petroleum, Telecommunication, construction of Dams, Bridges and any other turnkey project(s) etc. Our terms and Conditions are reasonable. 
    Leasing Price : 6%+2%
    Buying Price: 38%+2%

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    NAME  :Jason Edward
    EMAIL :financialagentltd@gmail.com
    SKYPE :financialagentltd@gmail.com  

    ReplyDelete
  148. We are Providers of all types of BG and SBLC with the best workable procedures. Our BG/SBLC ranges from MT799, MT760,(Both two way confirmation), MT103/23, MT103 (Both can be one way confirmation and two way confirmation) in USD and EUROS.



    Issuing Bank ranges from Top world 25 banks with face value ranging from 1M EUROS/USD to 5B EUROS/USD



    BROKERS ARE WELCOME & 100% PROTECTED!!!

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    For further details contact us with the below information Thank you.

    Email: info.sofifinanceltd@gmail.com

    ReplyDelete