August 31, 2018 / 10:39 PM / 3 months ago

Ecuador says received $500 mln from repo deal with Goldman Sachs

QUITO, Aug 31 (Reuters) - Ecuador’s government said on Friday it had received $500 million from a repurchase agreement with Wall Street bank Goldman Sachs as the Andean country seeks to plug its fiscal deficit.

“The $500 million is due to a repo operation with Goldman Sachs in which bonds were used as collateral,” Finance Minister Richard Martinez told reporters.

The deal had a rate of the three-month London interbank offered rate (Libor) plus 4.25 percent, the Economy and Finance Ministry said in a statement.

In addition, the Inter-American Development Bank (IDB) will lend Ecuador $237.6 million for social services and $250 million to help complete construction of a subway system in Quito, the ministry said.

Latin American development bank CAF, meanwhile, will lend $150 million to improve the OPEC member’s power sector, Martinez said. Ecuador is seeking to improve ties with U.S. banks and multilateral lenders that deteriorated under the rule of former President Rafael Correa.

President Lenin Moreno, a former Correa protege who turned against him after his 2017 election, is seeking to revive Ecuador’s economy, which has been hurt by lower oil prices and a bad earthquake. (Reporting by Alexandra Valencia; Writing by Alexandra Ulmer; Editing by Richard Chang)

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