Dec. 22 (UPI) -- The United States has selected Ecuador to begin negotiations on a grant program ranging from $300 million to $500 million aimed at financing infrastructure, institutional reforms and key projects to support economic growth through the Millennium Challenge Corp.
The decision allows Ecuador to design what is known as a compact program -- a highly selective mechanism through which Washington provides non-repayable funds that do not generate public debt or interest. Only a limited number of countries qualify for this type of financing.
According to U.S. officials, the selection recognizes Ecuador's recent progress in fiscal stability, governance and commitment to economic reforms. Bolivia and Guatemala, which were also evaluated, qualified only for smaller-scale assistance, underscoring the differentiated nature of the support granted to Quito.
The Millennium Challenge Corp, specializes in financing projects with measurable economic impact under a model that requires verifiable results and sustained reforms. Unlike traditional aid or loans from multilateral institutions, funds are disbursed only when countries meet previously agreed targets.
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