Latin America

Ecuador election influenced by U.S.-China friction

Anti-China conditions attached to a new loan from the U.S. Development Finance Corporation underscore candidates’ international leanings ahead of Sunday's election

"Ecuador will not be the next IMF colony," reads sign during 2019 protest. Photo: Tommo T/Shutterstock
“Ecuador will not be the next IMF colony,” reads sign during 2019 protest. Photo: Tommo T/Shutterstock

The announcement of a USD 3.5 billion credit line to help Ecuador pay off its debt to China hinted toward a confrontational approach of the recently formed U.S. International Development Finance Corporation (DFC) to Chinese finance in Latin America. While foreign policy is admittedly low among voter concerns ahead of Ecuador’s presidential elections on Sunday, the DFC loan puts the leading candidates’ choice of partner in even sharper focus, with the country in need of international support to recover from the pandemic.

Signed by outgoing President Lenin Moreno, the DFC loan is conditioned to Ecuador excluding Chinese technology...

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