Oil Raid

BMI View: Ecuador's government has now completed its plans to liquidate its four oil funds. Estimates of the total value to be transferred to the government's budget remain unclear, but one of the funds contains US$1.4bn. While we see significant upside to government revenues and a strengthening in the fiscal balance, we await further details on the size of these funds before formally upgrading our forecasts. However, we are concerned that such huge sums might result in unsustainable and uncontrolled government spending.

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