Latin American Economy & Business - May 2016 (ISSN 1741-7430)

The 7.8-magnitude earthquake that devastated Ecuador’s northern coastal provinces in mid-April caused an estimated US$3bn in damages – or about 3% of GDP. With the oil-dependent and dollarised economy already struggling with severe liquidity shortages, the left-wing government led by President Rafael Correa is considering all options, including a new financing agreement with the International Monetary Fund (IMF) and the sale of state assets.