Backyard on fire! Ecuador to help China's energy thirst.

<P Class=fp> <! - Startclickprintexclude - ><!-- endclickprintexclude -> Ecuador after the recent unrest, which left the Government is taking measures to make it more diversified financial linkages, and strengthen China's economy .relationship. .</ P ><!-- startclickprintexclude -> <NOSCRIPT> </ NOSCRIPT ><!-- endclickprintexclude -> <P> • Ecuador Finance Minister Rafael Correa (Rafael Correa) In an interview with the British "Financial Times .Report "(Financial Times) interview, April impeached by parliament of former President Lucio Gutierrez • (Lucio Gutiérrez) of the business supporters are trying to undermine the new government's stability. .</ P> <P> is worth mentioning that Mr Correa warned that local banks may refuse to extend the October short-term government bills is about to expire, an estimated value of $ 250,000,000. .</ P> <P> However, from China, other "friendly countries" (such as Brazil, Venezuela and Spain) and is headquartered in Bogota Latin American Reserve Fund, the loans can help fill any gaps in the budget, he said, .. .</ P> <P> Ecuador ability to repay the debt completely still. ."We can pay off every penny owed us, (but) we need to diversify the sources of capital investment," Finance Minister said. .</ P> <P> In addition, Ecuador is also hope that China will help promote exports accounted for 40% of the oil industry. .</ P> <P> • Alfredo Palacio (Alfredo Palacio) was the President, Vice-President of Ecuador, is now interim president of Ecuador, as he led the government is negotiating with a Chinese oil company a long-term oil sales .contract, to attract China, Canada and other countries for its investment in two large oil refinery projects. .In the largest project, located in the north coast of Jaramijo are trying to raise funds of about $ 300,000. .</ P> <P> Currently, 53 million barrels of oil per day in Ecuador, of which less than half the oil exported to the United States and the rest were exported to Asia and Latin America. .</ P> <P> Recently, energy-hungry China and Latin America for many major oil producing African countries interested in getting stronger, and with the western hemisphere's largest oil producer Venezuela signed a far-reaching agreement. .At the same time, trying to remove Mr. Correa investors worried about the recent policy changes, including the policies that will come from the fiscal stabilization fund of funds for social spending and make their own history on the U.S. dollar has a 5-year criticism of the monetary system. .</ P> <P> Mr Correa said that in the worst economic crisis in 2000 put forward the "dollarization" theory undermined the productivity of the non-oil economy, prompting the rise in unemployment, but "can not change it." .</ P> <P> He said the design is poor fiscal stabilization fund, the International Monetary Fund (IMF) recommended that the fund was a mistake. .</ P> <P> funded by oil revenues, and stability of gold was used to buy back short-term domestic debt, rather than foreign debt. .</ P> <P> However, the previous government is simply borrowing money to subsidize costs, so the total amount of net debt has not decreased [In fact, since 2002, domestic debt from the gross domestic product (GDP), .11.4% to 11.9%]. .</ P> <P> "This is a financial bicycle," Mr Correa said, "it does not reduce the debt level, its economic and financial significance of where?" In addition, international bonds by raising Ecuador .secondary market price stabilization fund increased by the presence of external debt repurchase costs. .</ P> <P> new structure will provide greater transparency and ensure that funds for social needs, he said. .</ P> <P> But Mr Correa insisted that Ecuador is trying to "within the framework of fiscal discipline," the country's economic recovery. .</ P> <P> in the financing costs equal to 4.7% of GDP before the fiscal surplus is also possible to achieve, and is expected to soon be able to more than 350 million U.S. dollars to complete the distribution agreement multilateral funding, including from the Inter-American Development Bank .(Inter-American Development Bank) to 1.5 billion dollars in loans and the World Bank (World Bank) to provide 1 billion dollars in loans. .</ P> <P> the Government of Ecuador continues to promote its structural reforms, including the introduction will be given to poorly managed state-owned national oil companies of Ecuador (Petroecuador) greater financial autonomy initiatives. .</ P>.