Executive Branch Enacts Humanitarian Support Law
26 junio 2020
ECUADOR

On June 22, the Executive branch enacted the Humanitarian Support Law to combat the COVID-19 health crisis by establishing measures to promote economic and productive reactivation. The law is already in effect. 

The law stipulates that, from the entry into effect of the State of Emergency and up to 12 months later, companies providing basic services (including telephone and telecommunications services) may not increase the cost of their services. They may also not suspend their services due to payment in arrears or the lack of payment during the state of exception, and up to two months after it ends. 

The regulations also set the stage for the Executive branch to define via Decree the pricing policy for the food and beverages included in the basic family consumption basket. This mechanism will be implemented during the State of Emergency and will be in effect until the end of 2020. 

In turn, the regulations state that the Monetary Policy and Regulation Board will issue a resolution ensuring that all entities of the national financial system, including credit card issuers, can come to an agreement with their clients to reschedule the collection of monthly installments due for any form of credit obligation both during the State of Emergency and for up to 60 days after it ends. 

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