ECUADOR

On October 5, the Executive branch formalized the Regulations enshrined in the Humanitarian Support Law, aimed at combating the COVID-19 health crisis. The regulation establishes a series of measures governing reactivation in the financial, food, labor and productive sectors. The regulation is already in force.

The decree stipulates that from the beginning of the state of emergency and for a 12-month period, companies offering basic services (including telephony and telecommunications services) may not increase the cost of their services. Also, they may not suspend user services due to lack of payment for up to two months after the end of the declared emergency.

With respect to financial obligations, the document states that financial institutions may not charge interests, expenses, surcharges or fines during the mediation process between the institution and the debtor. Likewise, the norm indicates that the debtor shall maintain their credit rating during this process. 

In addition, the Executive established that the National Institute of Statistics and Census will update the list of food and beverages within 60 days, as these make up the basic family basket based on current consumption patterns. The entity was also tasked with producing a report recording price variations during the first semester of 2020, as well as the behavior of the production, transportation and commercialization costs registered.

The measure also regulates the emergency special contract enshrining employer-worker relations on a full-time or part-time basis. The employer must register the contract signed with the worker in the Unique Labor System, indicating its terms and why it has been signed in this manner, and the employer must also continue to make social security payments based on the remuneration received during the term of the reduced working day. 

In other news, the Banking Superintendency issued Circular SB-IG-2020-0052-C, containing the Guide for the Management of the Risk of Money Laundering and Crime Financing, such as Terrorism (ARLAFDT). The regulations task control agencies with publishing the implementation of this manual on their web page, by November 29.