IDB approves US$150 million loan for Ecuador to combat organized crime

IDB Press Release

This is an automated translation of the press release issued in Spanish

The Inter-American Development Bank (IDB) approved a US$150 million loan and a US$5 million grant to support Ecuador in preventing crimes associated with organized crime groups and reducing their impunity.

Through this program, Ecuador will increase the coverage of initiatives to prevent organized crime and attention to vulnerable populations, the effectiveness of criminal investigation, and the capacities for national and local security management.

The Program for the Prevention and Response to Violence and Crime in Ecuador (PREVIC), approved by the IDB's Board of Executive Directors, seeks to contribute to strengthening Ecuador's security model to prevent criminal violence and reduce impunity for these crimes.

Despite efforts to revive the economy and achieve fiscal stability, Ecuador faces multiple challenges. One of them is the increase in criminal violence since 2018. This security crisis, driven by the actions of organized criminal groups, prevents the country from advancing its development agenda and hinders economic recovery.

“This is an innovative operation that will enhance the effective presence of the state in critical areas, protecting vulnerable zones, preventing recruitment, strengthening financial and forensic intelligence to reduce financial crimes, and improving coordination at the local and regional levels,” said IDB President Ilan Goldfajn.

“The current level of sophistication of organized crime requires the region to organize and implement an innovative regional approach. This Program in Ecuador is an example of our new approach: a comprehensive and multi-sectoral approach, combining social and police prevention, criminal investigation and security governance,” he added.

The Program was structured around three components. The first seeks to prevent violence in high-incidence areas and the recruitment of adolescents and young people, as well as to promote care for vulnerable populations. To this end, a new model of preventive police service will be implemented, which includes technological solutions for comprehensive management, technical assistance and training, the construction of police infrastructure and support for the school safety network.

In addition, 12 Civic Centres for Life and Peace will be built and put into operation, with integrated services for adolescents and young people aimed at preventing recruitment. The capacities of the Ministry of the Interior will also be strengthened for orderly and safe migration, including support for the implementation of the Plan against Illicit Trafficking of Migrants and the regularization of the migrant population in the country.

The second component seeks to increase the effectiveness of investigation and prosecution of crimes associated with organized criminal groups.

This will be achieved by strengthening the prevention and detection capabilities of the Financial and Economic Analysis Unit (UAFE) for money laundering and the investigation of this and other crimes such as homicide and extortion by the National Police of Ecuador (PNE). Support will also be provided for the modernization of chain of custody systems and the improvement of digital forensic investigation capabilities, including technical assistance, training, computer equipment, and the creation of the PNE cyber center.

Finally, the third component focuses on strengthening the capacities of the Ministry of the Interior and the Decentralized Autonomous Governments to coordinate and implement participatory and data-driven citizen security initiatives.

The information systems of the Ministry of the Interior and the PNE will also be modernized, the capacity for strategic analysis of organized crime will be improved, and a technical and academic management model will be developed for the University of Citizen Security and Police Sciences.

In addition, a programme will be implemented to strengthen local governance of citizen security, with a technological platform for training and monitoring and technical assistance for the design of municipal security plans with a gender and diversity perspective.

This program is aligned with the IDB's Framework for Support to Populations Affected by Situations of Fragility, Conflict and Criminal Violence (FCVC) and is part of the actions planned under the Alliance for Security, Justice and Development, presented by the IDB and the Ministry of the Interior of Ecuador in August of this year.

The IDB's $150 million loan has a 25-year repayment term, a five-and-a-half-year grace period, and an interest rate based on SOFR. The Program is complemented by a non-reimbursable $5 million from the IDB's Special Grants Fund.