Ecuador’s new president faces growing ESG challenges

International lenders distance themselves from Amazonian oil sector under pressure from climate campaigners

Ecuador’s newly elected president, conservative ex-banker Guillermo Lasso, faces significant ESG constraints as he tries to deliver on an election promise to double the debt-laden Andean country’s oil production. Running in his third electoral campaign, Lasso overcame a double-digit disadvantage in the first round to defeat leftist rival Andres Arauz by a 5pc margin. Lasso’s market-friendly stance will be a welcome relief to both foreign investors and bondholders. Like much of Latin America, Ecuador and its oil sector has been ravaged by the pandemic, with the country’s public debt rising to $63bn by end-2020—65pc of GDP. “The Chinese experience has been pretty negative” Gavin, Verisk