April 27, 2016 / 9:37 PM / 2 years ago

Ecuador asks IMF for loan after quake: IMF official

MEXICO CITY (Reuters) - The International Monetary Fund has received a request for a credit line from Ecuador following a deadly earthquake earlier this month, an IMF official said on Wednesday.

Firefighters do rescue work in Pedernales, after an earthquake struck off Ecuador's Pacific coast, April 20, 2016. REUTERS/Guillermo Granja

Alejandro Werner, director of the Western Hemisphere department, said the fund would be discussing Ecuador’s request for a loan from its Rapid Financing Instrument. He did not provide any specifics on the amount of aid.

Last week, Ecuador’s president said the country would temporarily increase some taxes and sell assets, and said it may issue global bonds to fund a multi-billion-dollar reconstruction after the devastating 7.8 magnitude quake, which killed over 650 people.

The rules of the IMF credit line mean Ecuador could get up to $368 million over the course of the loan, according to a Reuters calculation, but the level of access depends on the country’s balance of payments needs, according to IMF rules.

“The earthquake was a devastating phenomenon, and obviously we have facilities for countries that suffer natural catastrophes,” Werner told Reuters after an event in Mexico City.

Reporting by Michael O'Boyle; Editing by Leslie Adler

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