ECUADOR

On March 10, Ecuadorian President Lenín Moreno announced a series of economic measures in response to the global Coronavirus outbreak (COVID-19). The measures are expected to generate revenues of some USD 2,252 million.

These include a proposal from the Executive submitted to the National Assembly to increase income tax deductions by 0.75% for banking, oil and telecommunications companies. The president is expected to introduce this as an urgent reform bill in the next few days.

Also announced were government plans to close the Youth Secretariat, as well as four other regulatory and control agencies, three institutes, three public enterprises and four technical secretariats, which are hoped to allow for a budget cut of USD 1.4 billion (USD 800 million in goods and services and 600 million in capital goods).

Later that day, members of the Legislative Administration Council (CAL, for its acronym in Spanish), as well as bank heads and political groups comprising the National Assembly are set to meet with Finance Minister Richard Martinez, to analyze the President’s announcements and the economic measures, which will be passed to the Assembly in the coming days.