US Saves Ecuador From China’s Debt Trap

Ecuadorean President Lenin Moreno attends the signing of the first phase of the trade agreement between the United States and Ecuador, at the Carondelet Palace, in Quito, on Dec. 8, 2020. CRISTINA VEGA RHOR/AFP via Getty Images

WASHINGTON—The United States struck a deal with Ecuador to refinance its China debt, as part of an effort to counter Beijing’s growing influence in Latin America.

The U.S. International Development Finance Corporation (DFC) signed a framework agreement with the government of Ecuador on Jan. 14 to refinance its preexisting debt to China and support the country’s development projects in the future.