CONFIDENTIAL
/5.7%. Net international reserves are reported to have risen by $190 mn from Fe ary, to $908 mn on 22 May, despite a trade surplus of only $4 mn in January-April.
21 On 29 June the IMF approved an emergency assistance loan for Ecuador for SDR 37.7 mn, equivalent to 25% of quota. Discussions on an SBA and CFF are expected to begin in August or September following Ecuador's failure to meet performance criteria under its current SBA as a result of the earthquake. Negotiations with banks are not expected to resume until the main oil pipeline becomes operational again at the end of August. The trade surplus for the first four months of 1987 was only $11 mn, compared with $272 mn in the first four months of 1986: exports were $640 mn against $770 mn in the same period in 1986, the reduction wholly reflecting lower oil exports; imports were $628 mn (cf $500 mn in 1986). Consumer prices rose by 30% in the twelve months to April 1987 (cf 21.3% in the previous 12 months). Following the OPEC ministerial conference Ecuador's oil production quota has increased from 210,000 bpd to 221,000 bpd for H2 1987, but Ecuador has in the past not felt bound by OPEC quota allocations and hopes to increase production to 280,000 bpd by August and to 320,000 bpd by January 1988.
22 Following the completion of the syndication of an IDB $87 mn complementary financing in London and New York on 19 June, Colombia has obtained preliminary agreement from the banks for a syndicated credit of $1.06 bn over 10 1/2 years (5 1/2 years' grace) at Libor +15/16%. The authorities will also be seeking a further $1 bn from other sources, which would enable them to meet the maturities due this year on the large commercial bank loans taken up in 1981-82 without seeking a public sector rescheduling agreement. The World Bank approved a first SAL for Uruguay for $80 mn on 16 June. The Fund Board will discuss a request for enhanced surveillance on 27 July.
23 Jamaica has met the Q1 performance criteria for the SBA, and on 3 August the IMF Board will discuss the first review of the SBA and modifications to the programme to allow the increased capital spending envisaged in the 1987/88 budget made possible by an acceleration of the privatisation programme. On 17 June the World Bank Board approved four loans totalling $104 mn. In June the IMF approved an extension of Bolivia's SBA to July 20 (originally due to expire in June) to enable it to make the remaining two purchases. (Bolivia had been unable to make any purchases since December 1986 since inadequate data prevented Fund staff from being able to assess eligibility.) Bolivia's commercial bank creditors have agreed to an amendment to the original loan documentation to enable the debt buy-back scheme to come into operation. However, this agreement is subject to Fund Board approval that the Fund