Correa argued for reforms to be made to a fund that had been established on the advice of the International Monetary Fund in 2002 to collect and distribute Ecuador's oil revenue. Correa believed that the fund unjustly allocated the wealth generated by the country's oil; 70% of it went to pay back foreign debt, while 20% was set aside to stabilize oil revenues and 10% was spent on health and education programs. Given that over half of Ecuador's population were deemed to be living in poverty, Correa convinced Congress that a greater share of the fund should be spent on social programs to alleviate the effects of poverty; as a result, the portion spent on debt repayment was reduced to 50% and that allocated to health and education was increased to 30%. The World Bank responded by cancelling its previously approved loan to Ecuador, with Palacio holding Correa responsible for this action.