Ecuador is expecting approximately $3.6 billion from different Chinese loans in the coming year that were signed by President Rafael Correa’s administration as far back as 2010. China has become the main lender to Ecuador since they defaulted on about $3.2 billion of global bonds since 2008.
To date, Chinese money has financed the construction of large projects including hydroelectric plants. They have also funded the construction of grain silos and irrigation systems.
Just last week, President Correa submitted to the National Assembly a budget plan of $35.3 billion for next year. According to some unofficial estimates, China has committed over $11 billion in financing to Ecuador since 2009.