ECUADOR

On June 18, the Economic Regime Commission began its study of the partial veto of the Public Finance Ordinance Law. The rule empowers the Ministry of Economy to limit spending by public sector entities, and proposes setting up an insurance policy to cover oil price volatility and a savings fund to deal with eventual emergencies. The commission is expected to vote on the non-binding report on the veto on Saturday.

At the beginning of the session, legislator Gabriela Larreátegui (SUMA) indicated that the observations sent by the Executive Branch were an improvement in terms of form and substance on the wording approved by the Assembly. However, she requested the Ministry of Finance to explain the technical arguments used to determine the terms to meet the public debt.

Assemblywoman Ana Belén Marín (Alianza País) indicated that she would be in favor of some of the observations presented by Moreno. She said that the legislative committee should maintain the wording of the approved text regarding the issuance of bonds, Treasury Notes, debt rule and other payment obligations.

Similarly, Luis Pachala (CREO) added that public companies should be controlled and that the issuance of bonds between public sector entities be registered. He explained that coordinated planning should be drawn up between the public debt, the debt ceiling and Gross Domestic Product (GDP).