Minister Hussen announces negotiations of sovereign loan to Ecuador

From: Global Affairs Canada

News release

March 4, 2024 - Toronto, Canada - Global Affairs Canada

Canada and Ecuador have maintained official bilateral relations since 1960, with shared values including inclusive economic growth, biodiversity and climate protection. Canada remains committed in supporting Ecuador and its goal of reducing its greenhouse gas emissions in the energy sector under the Paris Agreement.

Today, during a Canadian Council for the Americas event in Toronto, the Honourable Ahmed Hussen, Minister of International Development, announced the Government of Canada’s intention to provide the Government of Ecuador with a sovereign loan of up to $120 million over 10 years in collaboration with a policy-based lending program from the Inter-American Development Bank. This loan would include a climate-resilient debt clause which could be made available in the event of a natural disaster, freeing up critical resources required to respond to immediate crises.

The sovereign loan aims to support Ecuador's just energy transition, promote investments in renewable energy, and facilitate access to clean and reliable energy. It will also help strengthen human rights in Ecuador by facilitating the inclusion of women and people with disabilities in the electricity sector. The loan will also positively affect isolated Indigenous communities that often rely on fossil fuels for energy generation by supporting their adoption of clean energy for more reliable electricity generation.

This loan is expected to include technical assistance of up to CAD$6.5 million to support the Government of Ecuador in promoting an inclusive energy sector and universal access to clean energy.

Minister Hussen made this announcement at a ceremony with Daniel Noboa, President of the Republic of Ecuador.

Quotes

“Canada and Ecuador have a positive relationship that continues to deepen. Canada remains committed to supporting Ecuador and its goals to reduce green house emissions, and to advance the role of women in the energy sector. By supporting the just energy transition program, Canada continues to work closely with the Government of Ecuador to build a sustainable future with a more inclusive and green economy.”  

- Ahmed Hussen, Minister of International Development

Quick facts

  • The loan would be provided under the Sovereign Loans Program, which was announced in Budget 2018.

  • Canada has been an active member of the Inter-American Development Bank group since 1972.

  • Providing sovereign loans to eligible countries improves their ability to make important investments to support their Sustainable Development Goals. 

  • Canada provided $17.3 million in international assistance to Ecuador in 2021-2022.

Associated links

Contacts

Olivia Batten
Press Secretary
Office of the Minister of International Development
Olivia.Batten@international.gc.ca

Media Relations Office
Global Affairs Canada
media@international.gc.ca
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