NEW YORK — The Inter-American Development Bank granted Ecuador a USD500 million loan that will help the South American nation to support its economic recovery, macroeconomic stability, the multilateral lender said November 17 in a statement.

The $500 million loan is for a 7-year term, with a 3-year grace period, and an interest rate based on LIBOR, the IDB said.

Structured under the Special Development Lending (SDL) category the loan will be disbursed in a single tranche. Its specific objectives are ensuring fiscal sustainability while safeguarding social safety nets and strengthening money market stability.

The transaction complements fiscal consolidation efforts agreed upon by the Ecuadorian government and the International Monetary Fund, the IDB said.