“China has a surplus of financial resources, but a deficit in natural resources, particularly hydrocarbons.”
That’s about the size of it. Meanwhile, Ecuador has plenty of oil and not much money right now so the solution is simple; China hands over U$1Bn to Muffinlandia, and Ecuador ships over the oil little by little in the next few years. As for all the talk of turmoil in Ecuador’s financial sector, here’s FinMin Borja via Bloomie:
“All the prophets of disaster who said dollarization won’t last and that there’s no finance for Ecuador have been proven wrong,” Borja said. “There’s enormous international interest in providing finance.”
And when he says “international”, you’d be way wrong to immediately picture Lula’s blue-eyed whiteys. By the way, Correa is polling 53% of vote intention for the presidential election, with his nearest rival at 12% or so. Therefore to quickly answer a reader’s mail from Friday, Correa wins. Period. Zerobrainer.