Leftist presidential candidate says IMF 'welcome' to help Ecuador

BSS
Published On: 09 Feb 2025, 09:19

CANUTO, Ecuador, Feb 9, 2025 (BSS/AFP) - Ecuador's leftist presidential hopeful Luisa Gonzalez gave qualified support for IMF help Saturday, telling AFP the fund was "welcome" to assist her country if it wished.

Speaking from her home near Ecuador's Pacific coast, Gonzalez -- the main rival of incumbent president Daniel Noboa in Sunday's poll -- however said support, most notably a recent $4 billion loan agreement, must not come with certain strings attached.

"As long as the International Monetary Fund wants to support Ecuador, without wanting it to make life more precarious for our citizens, without raising VAT, without removing subsidies, without affecting the already battered family economy. Well, welcome," she told AFP.

Her comments are likely to be closely watched by international lenders, who worry she may scrap the multibillion loan deal with the IMF struck last year.

Her political mentor, Rafael Corea, pushed Ecuador into default in 2008, refusing to pay international creditors and ordering the expulsion of the World Bank's representative in Ecuador.

The impact of that decision is still felt, with Ecuador paying a high premium to borrow on international bond markets.

Gonzalez is trailing Noboa in the polls, but may yet have enough votes to force a second-round run-off.

Whoever wins the election will face a series of economic challenges.

Last year the country faced rolling blackouts that likely forced the economy into recession.

Government debt stands at about 57 percent of GDP, according to IMF data.

Gonzalez also said she would work to mend ties with Mexico after an embassy raid that ruptured ties.

In April 2024 Ecuadoran security forces stormed the Mexican embassy in Quito to snatch former vice president Jorge Glas, who was wanted on corruption charges and had been granted asylum by Mexico.

"The current president has fought with everyone he could," she said. She also made specific reference to better ties with Russia.

Moscow banned some Ecuadoran imports after Noboa said he would send Russian military equipment to the United States -- who would then likely send the package to Ukraine.

Gonzalez said that plan "violated" a deal with Russia, while adding that she would "rebuild relations with different countries" and "the entire international community."

 

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