The Executive branch will introduce an urgent economic bill to the National Assembly next week. There are some rumours that indicate that, among other measures, the limit to the amount of debt that is constitutionally allowed will be increased. The bill will seek to legislatively support the Economic Program announced at the beginning of April by Lenin Moreno.
The Secretary of Policy, Miguel Carvajal, said in an interview that “next week will be issued a Urgent Economic bill to support the Economic Program.” The Executive is waiting for “a series of precisions derived from the Comptroller’s report on how to qualify what is and what is not public debt” before sending the regulations to the National Assembly.
Ecuador has a constitutional cap for the issuance of external debt established at 40% of GDP. However, a report from the General Comptroller of the State in early April showed that the current level of indebtedness is 52% of the GDP, so any new issue would be illegal. However, the Executive branch needs to issue debt to resolve the financial deficit it currently has. Therefore, the bill could include an article that raises that cap.
According to the Ecuadorian constitution, an urgent economic law must be dealt within 30 working days by the National Assembly or it will become law automatically. However, the government achieved a legislative agreement to give priority to the bill, so the 30 days limit would not be necessary.