Ecuador Plans Budget Cuts, New Debt as Oil Drop Saps Revenue

11 Dec 2014   Ecuador

Ecuador , which relies on crude for about a third of its budget, plans to cut spending next year by as much as $1.5 billion and will seek additional financing after prices for the OPEC member’s oil fell to five-year lows. The South American nation will trim current and investment spending and use credit lines from multilateral lenders to offset lower oil prices , the Finance Ministry said yesterday in an e-mailed response to questions from Bloomberg News . Ecuador is also planning tax reforms to boost government revenue and accelerate private investment and may seek additional financing if crude doesn’t stabilize next year, the ministry said. Government bonds extended their declines today. With prices for the nation’s Oriente crude down 23 percent since congress approved President Rafael Correa ’s 2015 budget proposal on Nov. 20, the government has said it would reduce funds for new schools and police […]

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