CRITISIM ABOUT IMF AND WORLD BANK
its defaulted bonds, rather than trying to do a bond exchange (Salmon, 2009). Ecuador,
country that is the first debtor with the ability to pay, disregarded that the external debt service
as a percentage of Ecuador's government revenues used to be extremely high. Since the debt
default in 2008, Ecuador has relied mostly on credits from China for financing needs.
Ecuador's Finance Minister Fausto Herrera announced in early July that Ecuador is seeking as
much as $ U.S. 1.4 billion in order to bankroll this year's budget. The Ecuadorian government
created the Programa de Finanzas Populares in 2008. A program that is supposed to expand
the popular financial sector that is supposed to focus lending to smaller financial institutions
7
that in return will lend to small businesses. "In January 2007 co-op loans stood at 11.1 percent
of private bank lending; by July 2012 this percentage had nearly doubled, to 19.6 percent. Co-
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