ECUADOR

On May 19, President Lenin Moreno announced new economic measures in response to the COVID-19 crisis. Among the measures, it is worth highlighting the announced funding for the reactivation and restructuring of the public debt. In addition, the Superintendency of Banks launched a public consultation on “General rule for the Public and Private Financial Sector Institutions Customer Ombudsman“. It will be in force until May 24.

According to Moreno, the measures will involve a US$4 billion cut in public spending: US$980 million will be cut from the wage bill; US$400 million from goods and services; US$1.3 billion from investment; and US$1.3 billion from external debt restructuring. Moreno also announced the creation of a credit fund with resources of US$ 1 billion to reactivate production. 

The President also announced that, from May 25, it will be possible to access a credit line called ” Ecuador Reactivate” to provide companies with liquidity and cover the payroll and operating costs of micro, small and medium-sized enterprises. Banco del Pacífico will be the first to offer credit, with rates of up to 5%, a 36-month term and a 6-month grace period. The Executive Branch estimates that more banks and cooperatives will be added weekly.

On the other hand, the Superintendency of Banks put out to public consultation the “General Rules for the Customer Ombudsman of Public and Private Financial Sector Entities” with the aim of incorporating new “preventive” elements to promote quality in services to users and financial customers. As well as guaranteeing the rights of the consumer. The regulatory proposal will be in public consultation until May 24th.