IDB lends USD 280m to aid Ecuador energy sector

The Inter-American Development Bank (IDB) announced on Friday it will give Ecuador a USD-280-million (EUR 247.9m) loan to transform, diversify and improve its energy mix and increase the use of and access to renewable energy sources in the country.

More specifically, the money will be used for the implementation of various policy reforms in order to help the country to reach its climate change goals and consolidate its fiscal and external accounts.

The loan will also support increased efficiency, modernisation, innovation and sustainability of the local electricity supply chain as well as energy trading with neighbouring countries.

With the current COVID-19 pandemic, Ecuador's fiscal revenue is headed for a major decline, the bank stated.

Although the South American Nation accounts for just 0.08% of the world's greenhouse gas (GHG) emissions, Ecuador wants to reduce its consumption of fossil fuels, IDB noted.

(USD 1 = EUR 0.885)

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