Ecuador gets one-year grace period on China Development Bank credit line

QUITO, Aug 5 (Reuters) - Ecuador has negotiated a one-year grace period on a credit line from China Development Bank (CDB) that will allow the South American nation to delay $417 million in payments, the finance minister said on Wednesday.

"We've obtained relief ... in the capital payment of a tranche of debt with China, with CDB specifically, that will give us relief for one year of $417 million," Richard Martinez said in a virtual news conference.

Ecuador owes China Development Bank $2.3 billion, which is spread across five credit lines. It owes a total of $5.3 billion to different Chinese state institutions.

The announcement follows a $17.4 billion debt restructuring plan that was overwhelmingly backed by investors as Ecuador seeks to emerge from years of economic stagnation and a brutal outbreak of the novel coronavirus.

(Reporting by Alexandra Valencia; Writing by Brian Ellsworth; Editing by Christopher Cushing)

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