Section » Economy

ECUADOR’S LEADING FAMILY BUSINESS GROUPS

Wikileaks.org.

ECUADOR’S LEADING FAMILY BUSINESS GROUPS
Date:
2008 August 8, 16:09 (Friday)

Canonical ID:
08QUITO731_a
Original Classification:
CONFIDENTIAL

Current Classification:
CONFIDENTIAL
Handling Restrictions
– Not Assigned –

Character Count:
19143
Executive Order:
– Not Assigned –

Locator:
TEXT ONLINE
TAGS:
EAGR – Economic Affairs–Agriculture and Forestry | EC – Ecuador; European Community | ECON – Economic Affairs–Economic Conditions, Trends and Potential | EFIN – Economic Affairs–Financial and Monetary Affairs | EIND – Economic Affairs–Commerce, Industry and Industrial Products; Industry and Manufacturing | EINV – Economic Affairs–Investments; Foreign Investments | PGOV – Political Affairs–Government; Internal Governmental Affairs

Concepts:
– Not Assigned –
Enclosure:
– Not Assigned –

Type:
TE – Telegram (cable)
Office Origin:
– N/A or Blank –

Office Action:
– N/A or Blank –

Archive Status:
– Not Assigned –
From:
Ecuador Quito

Markings:
– Not Assigned –
To:
Bolivia La Paz | Colombia Bogotá | Ecuador Guayaquil | Secretary of State | Venezuela Caracas

Content
Raw content
Metadata
Print
Share

C O N F I D E N T I A L QUITO 000731

SIPDIS

E.O. 12958: DECL: 08/08/2018
TAGS: ECON, EINV, EFIN, EIND, EAGR, PGOV, EC
SUBJECT: ECUADOR’S LEADING FAMILY BUSINESS GROUPS

Classified By: Classified by Charge Doug Griffiths. Reason: 1.4 B and
D.

1. (U) Summary: This cable identifies Ecuador’s leading
family business groups, which dominate Ecuador’s formal
economy and own most of the important companies in the
non-petroleum sector. End summary.
Overview and observations
————————-

2. (SBU) This cable is a snap shot of the most important
business groups in Ecuador, all of which are dominated by
family members, who usually hold the highest positions at the
different companies. The family corporate structure tends to
limit the innovation, expansion and corporate governance of
the groups. In some instances, the family leader will bring
in strong outside officials to help run the company — Isabel
Noboa’s Nobis group has a reputation for doing so — but in
many instances the family members make most of the decisions.
A number of these groups have remained strong after the
passing of the founding patriarch, although one academic said
that most family groups begin to break down in the third
generation. Most are not very transparent.

3. (SBU) As the name implies, these business groups include
a number of companies. In some instances, the group is
focused in a particular sector — the Wrights remain focused
in retail, and Bakker is focused on processed food. Most,
however, have branched into apparently unrelated industries.
The group structure, combined with Ecuador’s relatively small
size, means that there is a high degree of concentration in
many sectors, but also competition in almost all sectors.
Furthermore, the list below is not comprehensive, so there
are additional smaller business groups that provide
additional competition. An example of this is the
supermarket business, which is dominated by the Wright and
Czarniski groups mentioned below. However, the Santa Rosa
group also competes in the supermarket business, particularly
in middle-size cities, and Ecuadorians also shop in small
local grocery stories and at markets.

4. (C) The concentrated nature of many of these businesses
has created a business and political environment that puts a
premium on protecting vested interests, which explains much
of President Correa’s antipathy towards the Ecuadorian
business elite. As noted below, some of the leaders of the
various groups have served in important political positions,
raising questions about conflict of interest. Others have
kept a lower political profile, but even so are politically
attuned and influential on matters important to their
business. However, some of that political access has
diminished under the Correa administration, which has kept
its distance from many business organizations and leaders,
and with the closure of congress, whose members were often
highly responsive to guidance from the private sector.

5. (SBU) The groups are listed below in approximate order of
their importance, although such a ranking is partially
subjective. The structure of many of these business groups
is often opaque; there are sometimes cross holdings between
groups; and Ecuadorian businesses often under report revenue,
assets, and profits. Therefore the snapshots below are
incomplete but represent our best information on the groups’
structures, based on interviews, government agency
information, and press reporting.

THINKING OF MOVING TO ECUADOR? READ THIS BOOK

Noboa Group
———–

5. (SBU) Alvaro Noboa, son of a multi-billionaire banana
magnate, Luis Noboa, is the richest man in Ecuador. His
fortune is valued at $1 billion. His father’s death in 1994
sparked a bitter sibling feud over inheritance that resulted
in several (pending) lawsuits and left Alvaro in control of
most of the family businesses. Alvaro’s sister is Isabel
Noboa, owner of the Nobis Group (mentioned below). Noboa
served as president of the Junta Monetaria, which oversaw
monetary policy and the Central Bank, under the brief
government of Abdala Bucaram in 1996-97, and ran for
president under Bucaram’s Roldosista Party in 1998 (losing
the final round election to Jamil Mahuad). Noboa later split
off from the PRE to form his own party (PRIAN), and was
defeated in his second presidential bid by Lucio Gutierrez in
2002, and in his third by Rafael Correa in 2007.

6. (SBU) Noboa is the leadering Ecuadorian banana exporter.
He has over 7,000 hectares of production in 11 properties,
and complements his banana production with the ownership of a
marine transportation company. The Noboa Group has 144
companies in different sectors including agriculture,
transportation, banking, insurance, and manufacturing.
Noboa’s most well-known companies are LAN Ecuador
(international airline, associated with LAN Chile), Seguros
Condor (insurance), Banco del Litoral (banking), La Bananera
(bananas), El Cafe (coffee), Molineras Industriales (flour
miller), Molinos Poultier (oat miller), Frutera Jambeli
(tropical fruits), Cartonera (cardboard boxes), and Naviera
Transmabo (maritime transportation), which according to
Ecuador,s tax agency (SRI) together generate annual sales of
$570 million. According to data from the Superintendence of
Companies (2005), these companies have $560 million in
assets.

Isabel Noboa/Nobis Group
————————

7. (SBU) Isabel Noboa, Alvaro Noboa’s sister, is another heir
to Luis Noboa’s fortune. After many fights with her brother
and lawsuits over the family fortune, Isabel Noboa decided to
cash in her shares of the Noboa family’s shipping companies
and huge banana plantations. In 1997, Isabel Noboa reached
an agreement with the estate’s heirs to give up her share in
the banana business in exchange for the largest Coca-Cola
bottling company in Ecuador. Isabel Noboa is one of
Ecuador’s most successful entrepreneurs, and is chairman and
CEO of Nobis SA, a $520 million consortium.

8. (SBU) The Nobis Group owns Ecuador’s oldest and most
productive sugar mill, Valdez, along with 12 other companies,
ranging from one of Ecuador’s largest dairy farms, to an
alcohol supplier for the liquor industry, to cosmetics,
pharmaceuticals firms, real estate, and construction
companies.

9. (SBU) The Valdez sugar mill earns around $19 million in
profits a year, with more than $64 million in sales.
Recently, the Nobis Group’s Coca-Cola Congaseosas joined the
Ecuador Bottling Company, a corporation which has merged all
Coca-Cola bottling operations in the country.

10. (SBU) Nobis S.A. has become the most dynamic real estate
developer on the Coast. Nobis built the Mall del Sol in
Guayaquil, a one million-square-foot shopping center, which
is the largest on the South Pacific Coast, and has expanded
to include an executive center and a Sheraton hotel. Nobis
has two other ambitious developments in Guayaquil “The Big
Apple” and a new riverside complex. Other construction
projects include a Howard Johnson hotel in Quito, apartment
buildings, another two large hotels, and a high-tech
hospital. Nobis’s various companies now employ more than
8,000 people.

11. (SBU) Isabel Noboa was president of the pro-trade
National Competitiveness Board during the Lucio Gutierrez
administration in 2002.
Now, she prefers to keep a low profile, and is not involved
in politics. Noboa formed an anti-poverty organization LANN
(the initials of her father’s full name) and Fundacion Nobis,
which support education, health and housing projects
nationwide. Noboa also serves as the honorary consul of
Canada in Guayaquil.

Wong Group
———-

12. (SBU) The group was founded by Segundo Wong, of
Chinese-Ecuadorian origin, who took control of the famous
fruit company, Favorita Fruit, a banana and tropical fruit
producer and trader. Wong was a pioneer in entering the
Chinese market with Ecuadorian bananas. Reybanpac (bananas),
the flagship company of the holding company Favorita Fruit,
has 7,000 hectares of banana plantation, and which according
to the group provides 20% of Ecuador’s total exports. This
group is Alvaro Noboa’s greatest competitor. It also has a
strong presence in the agricultural and cattle sector of the
coast. Wong’s leading companies are Reybanpac (bananas),
Reysaihua (tropical fruits), Fertisa (fertilizers), Andean
Cardboard, and Reyleche (dairy products).

13. (SBU) After Segundo Wong’s death, his eldest son Vicente
Wong, a member of the Board of the Guayaquil Chamber of
Agriculture, took over leadership of the group. Vicente,
together with his brother and sister, and under the legacy of
his father, is continuing to open new markets for the
Ecuadorian banana and fruit industry.

14. (SBU) The group employs approximately 9,000 workers.
The Wong Group created the Wong Foundation in 1993 to manage
and develop social programs to promote physical, intellectual
and spiritual growth of children and their communities, in
rural areas.

Egas Group
———-

15. (SBU) The Egas group is the leader in Ecuador’s financial
sector. The head of the group is Fidel Egas, who prefers to
keep a low profile. Egas started his empire with a Diners
Credit Card franchise during the 1960′s, and then bought
shares of Banco de Pichincha, the largest bank in Ecuador, in
1990. The Egas group owns most of the assets of the
Financial Group Pichincha, which total approximately $2.9
billion. The group’s main activity is banking, and the most
important banks in the group are: Banco del Pichincha
(commercial bank), Financiera del Peru (business banking),
Pichincha Financier in Miami and Nassau (investment and
business banking), Financiera de Ruminahui (business
banking), Financiera de Loja (business banking), Inversora
Pichincha in Colombia (investment banking), along with Diners
Credit Card. Now the group is beginning to have a greater
presence in micro credit, and owns CrediFe (subsidiary of
Banco del Pichincha; administers its microenterprise loan
portfolio).

16. (SBU) The group also has business in the media sector,
and owns the local channel Teleamazonas, the magazines COSAS,
CARAS, Soho, Diners and Gestion and the marketing agency
Delta. The magazines as well as the TV channel are very
important and influential in Ecuador. Other businesses
include insurance companies, movie theaters, construction
companies, real state agencies, car concessionaires, and the
investment consulting firm Multiplica.

Isaias Group
————

17. (SBU) Brothers William and Robert Isaias, former heads of
the Isaias group, were very influential during the government
of Abdala Bucaram in 1996-1997. They owned the business bank
Filanbanco, which in 1998 was involved in Ecuador’s largest
bank failure. Both brothers fled the country owing millions
of dollars to their clients, and are charged with
embezzlement in Ecuador. The government took over
administration of the bank in 1999, and used state funds to
keep the bank afloat, although it finally collapsed in 2001.
Both brothers now live now in the U.S. (on H visas), and the
GOE is trying to extradite them. The head of the group is
now Estefano Isaias, brother of the ex-bankers.

18. (SBU) Many of the Isaias companies have complicated
ownership structures involving other businesspeople, so
listing the group’s holdings is difficult. The group has had
a major presence in the media business, with TeleCentro (TC
Television) and Teledos (Gamavision), and part of TV Cable
(also owned by the Eljuri family). The group’s TV assets add
up to about $45 million. The Isaias group also owns
industrial and commercial company Emilio Isaias (EICA, a
trade company), Intercontinental de Materiales (an importer
of construction machinery), and construction, construction
investment, insurance, and real estate businesses, among
others. It has partial ownership in the Toni Company (dairy
products), partly owned by Maria Gloria Alarcon, President of
the Guayaquil Chamber of Commerce. The group also has a
presence in the agricultural and petroleum sector.

19. (SBU) On July 7, 2008, the GOE confiscated the assets of
195 companies of the Isaias Group, including three major
television channels (TC, Gamavision and Cablenoticias).
According to the GOE, the seizure of assets will help recover
the nearly $600 million owed by the Isaias Group’s Filanbanco
to the Deposit Guarantee Agency (AGD).

The Eljuri Family
—————–

20. (SBU) Juan Eljuri Chica created this Cuenca-based empire
over the past fifty years. His sister Gladys Eljuri, once
head of the family business after his brother’s death, was
Minister of Tourism under Lucio Gutierrez in 2004. Now the
group is led by Juan Eljuri Anton, the eldest son of Juan
Eljuri Chica. The group has a large presence in Ecuador’s
major cities and in the south of Ecuador. The family
businesses include internet services, cable television (TV
Cable), the TV channel Telerama, the Bank of the Austro,
ceramic industries (Ecuaceramica and Rialto), airlines
(Interboro Transport and Interborder), hotels (Marriot Hotel
and a number of smaller ones), optical fiber, an electric
generation power plant, the bottle Company Azuaya, hardware
stores, and “Juan Eljuri” retail stores that have over 6,000
locations in the country and mainly sell electronic
appliances. In the automobile sector, the group has a
company that assembles Kia Rio and Pregio cars for the Andean
region. The group owns car dealerships NeoHyundai, AEKia,
Automotive Continental, Metrocar, Recordmotor and Asiauto, as
well as a distributor of liquefied petroleum gas (LPG),
National Gas Company Congas. The group has over 6,000
employees. The assets of the 20 main companies add up $410
million, and register sales of approximately $470 million
annually.

The Wright Family
—————–

21. (SBU) The group is a leader in the commercial sector,
with its largest company being Supermarkets La Favorita,
better known as grocery stores Supermaxi and Megamaxi. The
Wright family changed the concept of grocery sales in
Ecuador, with the opening of the first supermarket chain in
Ecuador, Supermaxi (Ecuadorians used to buy their groceries
at farmer markets and at small stores). In 2005 La Favorita
had sales of over $690 million, and $355.5 million in assets.
In 2007 Lideres (El Comercio newspaper’s weekly magazine
which documents business leaders and business developments),
along with Price Waterhouse Coopers, ranked La Favorita as
the most respected company in Ecuador. Thomas Wright is the
head of the Wright family but rumors say he may be
contemplating retirement. The CEO and Executive President of
La Favorita is Thomas Wright’s son Ronald Wright; his
youngest son, Andy Wright, is Vice President. The family’s
political profile is low, although it made contributions to
different political parties during the 2006 presidential
campaign.

22. (SBU) Other companies within La Favorita in addition to
Supermaxi are: Megamaxi (Wal-mart style superstore),
Superdespensa (supermarket), Bebe Mundo (similar to Babies r
us), Jugueton (toy store), Misterbooks (bookstore), Televent
(TV Sales), ComoHogar (household supplies), Importpoint
(import company), Pollo Favorito Profasa (chicken), Andean
Milk (dairy products), Maxipan (bread), Agropesa, and Lechera
Andina (dairy products), among others. The Wrights also have
a hydroelectric generation plant, Enermax S.A., in Cotopaxi
province.

Czarniski Group
—————

23. (SBU) The head of the group is Johnny Czarniski. This
group is the greatest competitor of the Wright group. They
own a supermarket chain, Mi Comisariato, which traditionally
has targeted lower income families; however Mi Comisariato is
moving upscale with a presence in shopping centers. The
group owns 25 companies; the most important ones are:
Importadora El Rosado (importer), Inmobiliaria Lavie and
Motke (real estate companies), Supercines (movie theaters),
Mi Jugueteria (toy store) the Chile,s franchise in Ecuador,
and food processers such as Superba and Alimentos del
Ecuador, among others. The El Rosado group controls the
largest chain of shopping centers, moving into Ecuador’s
second tier cities.

24. (U) Johnny Czarniski is also the Israeli honorary Consul
in Guayaquil.

Bakker Group
————

25. (SBU) The head of the group, Executive President and
founder is Luis J. Bakker. The Bakker group is the owner of
Ecuador’s largest food producer, Pronaca, which had sales of
$400 million and assets of $289 million in 2006. Pronaca was
founded 45 years ago, and currently commercializes leading
food brands such as Mr. Pollo (poultry), Mr. Chancho (pork),
Mr. Pavo (turkey), Fritz (sausages), Indaves (eggs),
Gustadina (canned food, rice and marmalades), and Rubino
(canned olives, cherries, pasta sauces, and artichokes),
among others. Pronaca owns and operates pork and broiler
farms, hatcheries, processing plants, feed mills, and
distribution centers across Ecuador. Pronaca’s latest
business is the production and sales of palm hearts )
Ecuador is now one of the leading exporters of palm hearts
and Pronaca is setting up palm heart operations elsewhere in
the region, including Brazil. The group also owns Inaexpo,
which is an agricultural exporting company that exports
Pronaca’s products to Europe, Asia, Africa and Latin America.
The family keeps a very low political profile.

Villamar Group
————–

26. (SBU) Since 1931, the Villamar group has concentrated its
business in drugstores and pharmacies, owning the largest
drugstore and pharmacy chain in Ecuador, Fybeca, along with
eight other pharmacies and drugstores. The group is run by
Pedro Villamar, who keeps a very low profile.

Other Important Family Business Groups
————————————–

27. (SBU) Ortiz Group: Mainly construction and real estate.
The head of the group is Gerardo Ortiz.

28. (SBU) Villaseca Group: Agro industry — vegetable oil,
milk, and cattle. The group also owns a one of Ecuador’s
largest plastic company. The head of the group is Juan Jose
Villaseca.

29. (SBU) Quezada Group: Import and export companies. The
head of the group is Wilmer Quezada.

30. (SBU) Rivadeneira Group: Transportation and supplier of
heavy equipment for the agricultural sector. The head of the
group is Mario Rivadeneira, former Ecuadorian Ambassador to
the U.S. and former Foreign Minister.

31. (SBU) Quirola Group: Mainly dedicated to the agriculture
sector. The group also owns the commercial bank Banco de
Machala.

32. (SBU) Dassum Group: Owns many textile businesses, and
some real estate companies, including a share of the Hilton
Colon. The head of the group is Roberto Dassum, former
President of the Chamber of Industries of Guayaquil.
CDA Griffiths
READ FROM WIKILEAKS

No CommentsPermalink

Ecuador: public debt increases almost fourfold in ten years

euniverso.com/Stuart Vera (machine translated) Simple mathematics. If we divide the amount of debt that the State has with internal and external creditors, in addition to other possible ‘contingents’, which reaches $ 55.26 billion, for the total population of the country (16’556.112, according to the National Institute Statistics and Censuses), each Ecuadorian has to pay $ […]

No CommentsRead this post »

Ecuador to increase oil output, ignore quota limits by OPEC

theguardian.com reported – Ecuador risks Opec split by increasing oil output Ecuador has become the first country to publicly admit it will not meet Opec’s production curbs, saying it needs to pump more oil to address its fiscal deficit. The South American country’s promised cut of 26,000 barrels of oil a day is a tiny […]

No CommentsRead this post »

Ecuador may raise tariffs on 400 imported products

elcomercio.com (machine translated) reported that the Foreign Trade Minister Pablo Campana announced on June 29, 2017, that he plans to raise the tariff of 400 imported products as much as five percentage points. This decision has taken a number of businessmen by surprise. Of the 1,243 imported products under review after the safeguards were removed […]

No CommentsRead this post »

Videotapes Implicating Ecuador Officials in Odebrecht Case

Karina Martín /panampost.com reported a former Odebrecht executive in Ecuador has produced videotapes of his meetings with government officials. The videos are expected to reduce his sentence, as he is cooperating with the trial currently taking place in Brazil. The former executive will now reportedly receive the lowest sentence of the 77 people who have […]

No CommentsRead this post »

Ecuador: Average of 3.5 percent of loans to banks delinquent

metroecuador.com.ec (machine translated) The level of delinquency in Ecuador has declined and stands at an average of 3.5 percent, said today, June 7, the president of the Association of Private Banks of Ecuador, Julio José Prado. “Numbers are declining,” he said in an interview on public television recalling that until the middle of last year, […]

No CommentsRead this post »

Ecuador: President Reaches Out To World Bank to help fund social programs

Alexandra Valencia reuters.com Ecuador’s new leftist president, Lenin Moreno, said on Thursday he had reached out to the World Bank – an organization scorned by his predecessor – in a bid for financing that could help him fund ambitious social programs. Former President Rafael Correa ordered the expulsion of the World Bank’s representative in the […]

No CommentsRead this post »

2016 Ecuador Earthquake insurance company losses of 575 million dollars

Ecuador quake insured loss pegged at $575m Share by Artemis on April 20, 2017 artemis.bm / The powerful magnitude 7.8 earthquake that struck Ecuador just over a year ago is now expected to result in an insurance industry loss of $575 million, with reinsurance markets having taken a share. However the overall economic impact to […]

No CommentsRead this post »

Ecuador: President terminates 16 Bilateral Investment Treaties on his way out

TNI.ORG – On May 16, President Correa of Ecuador signed decrees terminating 16 Bilateral Investment Treaties (BITs), including with the US, Canada, China and eight European countries. The decision follows the recommendation of the Ecuadorian Commission that audited the country’s Investment Protection Treaties (CAITISA). The President of the CAITISA Commission Cecilia Olivet (a researcher at […]

No CommentsRead this post »

Ecuador recorded an inflation of 0.14% in March, according to the INEC

Ecuador recorded an inflation of 0.14% in March, according to the INEC andes.info.ec / $ 709.22 estimated cost for Basket of goods for family of four. Ecuador registered an inflation rate of 0.14% in March, according to the latest Consumer Price Index (CPI) report published by the National Institute of Statistics and Censuses (INEC) ). […]

No CommentsRead this post »

How Ecuador may follow Venezuela over the cliff, an expats viewpoint

pleasespikemydrink.com / Nick Vasey – (Opinion) Ecuador-death-by-government/ – one long-term resident’s personal evidential account of how Ecuador is likely following Venezuela over the cliff … and why Correa’s “robolucion” must be outed as the epic failure and corrupt rort it really is. There is always something awful and tragic about watching a perfectly good ship […]

No CommentsRead this post »

Ecuador: Report States Public Debt is at Legal Limit of Gross Domestic Product

ecuavisa.com reported the Ministry of Finance published this Friday, April 21, 2017, the public debt bulletin closing to March this year. The figures show that the balance of external debt is US $ 26.486 billion, while domestic debt increased to US $ 13.979 billion; Both amounts to 40,465 million dollars. For the vice president of […]

No CommentsRead this post »

Ecuador: Economy Shrinks for First Time in ten years

dailymail.co.uk/Reuters) – Ecuador’s economy shrank for the first time in a decade last year, falling 1.5 percent due to lower oil prices, a strong dollar that hurts the dollarized export-oriented country, and a severe earthquake, the central bank said on Monday. Outgoing President Rafael Correa said over the weekend the OPEC nation’s economy grew 1.5 […]

No CommentsRead this post »

Ecuador: Alternative Facts of Ecuador’s Economy by 50 plus economists

Ecuador’s Macroeconomic Alternative Facts: Debunking the Distorted Analysis of 50+ Economists econ101.usfq.edu.ec / Carlos Uribe-Teran and Pablo Vega-Garcia Professors of Economics, School of Economics and Institute of Economics, Universidad San Francisco de Quito In this post we refute the imprecise and false macroeconomic statements (or the so-called “alternative facts”) presented in the post written by […]

No CommentsRead this post »

Sacagawea Dollar: King of Currency in Ecuador

Miamiherald.com/By Jim Wyss QUITO ECUADOR Busy selling fruits and vegetables on a recent weekday, Luzmila Mita dug into her apron and pulled out a fistful of coins embossed with the image of a Native American woman with a baby strapped to her back. “I always thought she was one of us,” said Mita, as she […]

No CommentsRead this post »

Ecuador: When this fellow sings praises of an economy, then it is time to sell (opinion)

forbes.com/Tim Worstall: (opinion) A useful little aide memoire is that when Mark Weisbrot starts to praise the economic policy of a country, then that’s a real good time to sell everything and run screaming for the hills. Toward that stock of shotgun shells and canned beans you’ve got for when it all really does start […]

No CommentsRead this post »

Ecuador: President Correa blames right wing conspiracy in attacking Latin America Integration

panampost.com/karina martin wrote…. Ecuador President Rafael Correa claimed this week that there have been deliberate attempts by the right to destroy the Union of South American Nations (Unasur) and the Community of Latin American and Caribbean States (CELAC). Correa claimed that the right is attempting to attack Latin America integration and its acting organizations. “When […]

No CommentsRead this post »

Brazil: Strapped for Cash, Olympic Stadiums in Ruins

dailymail.co.uk reported Brazil’s $12 billion Olympic legacy lies in ruins: Five months after the Rio Games, stadiums are crumbling as cash-strapped nation is left with crippling debts Shocking pictures show arenas used during the Olympic and Paralympic Games last year in disrepair An estimated $12billion was spent on the Games, with nearly the same being […]

No CommentsRead this post »

China’s Growing Presence in Venezuela

Marc Frank/reuters.com From buses and trucks to a $500 million golf resort, China is deepening its business footprint in Cuba, helping the fellow Communist-run state survive a crisis in oil-benefactor Venezuela and insulate against a possible rollback of U.S. detente. Cuban imports from China reached a record $1.9 billion in 2015, nearly 60 percent above […]

No CommentsRead this post »

Several U.S. Companies Plan Expansion into Mexico Despite Trump Threats

INTERMEDIATE ADVANCED SPANISH VOCABULARY – READ THIS BOOK INTERMEDIATE ADVANCED SPANISH VOCABULARY – READ THIS BOOK panampost.com / Several US companies are planning expansion into Mexico despite warnings from President Donald Trump to impose taxes according to The Wall Street Journal. The newspaper said that Rexnord, a company dedicated to the manufacture of industrial bearings, […]

No CommentsRead this post »

Ecuador’s new govt needs to reach trade agreements with U.S. to benefit country

QUITO (Sputnik) -sputniknews.com The new government of Ecuador elected in the elections on February 19 will have the character necessary to reach trade agreements with the US that are positive for the country, said the president of the Chamber of Industries of Guayaquil , Caterina Costa. “I am very positive, I believe that with the […]

No CommentsRead this post »

Ecuador: Basic family basket of goods for January 2017 is $701.93

eluniverso.com(machine translated) The basic family basket was calculated in January 2017 at $ 701.93. This was reported yesterday by the National Institute of Statistics and Censuses, in its monthly report. According to the institution, monthly family income (which takes into account that the family receives income equivalent to the basic salary multiplied by 1.6 recipients) […]

No CommentsRead this post »

Ecuador could reap bonanza in bonds if opposition wins

Dion Rabouin/reuters – “Ecuador has the potential to be a breakout story depending on how the elections go,” said Arif Joshi, emerging markets debt portfolio manager at Lazard Asset Management, who said Ecuador was one of his top picks for 2017. “If the opposition wins you will likely see the same type of spread compression […]

No CommentsRead this post »

Ecuador: Cost of Living surpasses many families monthly income

The deficit per family reaches 143.81 dollars. The testimonies confirm it. Food is the main expense. Lucía Gámez is the mother of two teenagers. She and her husband work and family income reaches $ 700 a month. “Only in food spending an average of 160 dollars a week, a year ago spent 130. Meats of […]

No CommentsRead this post »

Trump threatens remittances to Mexico

Mexico’s biggest cash cow is under threat from President Donald Trump. The country’s largest source of cash comes from Mexicans living in the United States. That is now under the microscope after Trump issued an executive order Wednesday to start building a wall on the border. During his campaign, Trump said multiple times that Mexico […]

No CommentsRead this post »

Ecuador: So far 3.3 million transactions serviced through e-money

andes.info.ec reported that through January 2, 2017, a total of 3.3 million transactions were made in Ecuador with e-money through 284.529 accounts for 13.2 million dollars. Ricardo Quiroga, promoter of the e-money project “Proyecto Efectivo desde Mi Celular del Banco Central del Ecuador” affirmed that until 2016, 1.000 accounts were reported each month but after […]

No CommentsRead this post »

Ecuador: New Intellectual Property Law

lexology.com reported the “Código Orgánico de la Economía Social de los Conocimientos, Creatividad e Innovación,” (Organic Code on Social Economics of Know-how, Creativity and Innovation), which supersedes the current Intellectual Property Law, was recently published on December 9, 2016. SPANISH SLANG ECUADOR – READ THE BOOK As indicated in Article 1 of said Code, “The […]

No CommentsRead this post »

Ecuador returns to the bond market again, fourth time in less than a year

By Paul Kilby/IFR The Republic of Ecuador took center stage in Latin America’s primary market on Tuesday, returning with its fourth bond deal in less than a year. Ecuador raised US$1bn through a tap of its 9.65% 2026 at a yield of 9.125%. Hit by the oil rout that began in 2014, Ecuador has leaned […]

No CommentsRead this post »

Ecuador closes out 2016 with 1.12% inflation rate, down from 2015, 2014

Ecuador’s annual inflation in this 2016 was 1.12%, as reported by the National Institute of Statistics and Census (INEC). This figure was recorded through the Consumer Price Index in a report and it is also the lowest in the last ten years. In 2015 and 2014 inflation was two points above the current, with 3.38% […]

No CommentsRead this post »

17 years ago Ecuador initiated adoption of U.S. currency

andes.info.ec / On January 9, 2000, on radio and television, then President Jamil Mahuad announced the implementation of dollarization. It was the corollary of the worst crisis in the country, triggered by the bankruptcy of a part of the private financial system that resulted in a seizure of deposits and an economy that was on […]

No CommentsRead this post »

Ecuador: Imported Liquor From Europe prices begin to decrease, with 0 tariff

ELUNIVERSO.COM REPORTED: The first zero-tariff liqueurs that the agreement with the European Union (EU) envisages are not yet imported from Europe, and in Ecuador the bottles in stock are sold at less price. This is a first effect in the liqueur market in the country, since this product and the inputs for agriculture (urea, fertilizers) […]

No CommentsRead this post »

Samborondón, Ecuador: Residents surprised with property tax increases of up to 40 percent

Residents of La Puntilla, in Samborondón, expressed surprise and unease about the increase of approximately 200 dollars, depending on the case, in property taxes in relation to last year. An inhabitant of the urbanization Las Riveras, on the Samborondón road, paid this Wednesday $ 820.91 for that tax, when last year paid $ 612.74. He […]

No CommentsRead this post »

Ecuador: New Financial Changes for 2017

elcomercio.com reported the oil, labor, banking, fiscal and prepaid medicine sectors as well as foreign trade will face new rules of the game in 2017, which will be marked by the electoral agenda. The country is forced to reduce oil production in 2017 due to the agreement reached last November in the Organization of the […]

No CommentsRead this post »

Mexico: Remittances up stubstantially, highest in ten years

TELESURTV.NET Mexico’s central bank governor Agustin Carstens said that a rise in remittances was due to a weak exchange rate, more U.S. jobs and fears over Trump. Remittances to Mexico posted their biggest jump in over ten years in November in a possible reaction to the U.S. election victory of Donald Trump, who threatened to […]

No CommentsRead this post »

Central Bank Predicts Ecuador’s Economy to grow 1.42 percent in 2017

reuters.com/ reported on Dec 29 Ecuador’s central bank expects the Andean nation’s economy to grow by 1.42 percent in 2017 with respect to 2016, central bank manager Madeleine Abarca said in a press conference on Thursday. The country’s economy is seen shrinking by 1.7 percent for 2016 in part due to a 7.8-magnitude earthquake in […]

No CommentsRead this post »

Ecuador approves new law in attempt to curb land speculation

elcomercio.com reported that the Ecuador National Assembly has approved a law which is focused on preventing land speculation. It is referred to in Spanish as the plusvalía or capital gains law. The vote was 79 in favor, 27 against and one abstention. The law will put in place a 75% tax on extraordinary profits on […]

No CommentsRead this post »

Ecuador: Minimum Monthly Salary set for $375 a month in 2017

The amount was set yesterday in consensus between workers and employers and represents $ 9 more than the current. The basic salary in Ecuador for 2017 will be $ 375, equivalent to an increase of $ 9 to the current amount ($ 366). This was announced yesterday by the Minister of Labor, Leonardo Barrezueta. “We […]

No CommentsRead this post »

Ecuador: National Assembly approves trade agreement with European Union

99.7 percent of products exported to EU to have zero tariffs. eltelegrafo.com.ec reported the National Assembly has approved a trade agreement between Ecuador and the European Union, with 97 votes in favor. The trade deal now goes to President Correa before it’s published in the Registro Oficial. The agreement will take effect January 1. 99.7% […]

No CommentsRead this post »

Fitch Ratings Downgrades Ecuador

.fitchratings.com (Press Release) Fitch rates Ecuador ‘B’ and assigned a Negative Outlook on Aug. 25, 2016, reflecting the country’s weak growth performance, high fiscal deficits, increasing debt burden, and potential challenges to timely policy adjustments in the context of subdued growth, the oil price outlook and prospects for a divided congress following the 2017 elections. […]

No CommentsRead this post »

Ecuador adopts measures with more control over banks

holaciudad.com reported that new measures will slow amounts of money sent out of the country and increase domestic loans. Ecuadorian President Rafael Correa today justified the adoption of recent measures to control the country’s banks as beneficial mechanisms for the economy, as they seek to boost credit and slow the flow of resources Ecuadorian President […]

No CommentsRead this post »

Rally in oil prices, Ecuador back to borrow more money

reuters.com reported Ecuador returned to the US dollar bond market Thursday for the third time this year, raising US$750m through a new 10-year note following a recent rally in oil prices. The deal, rated B by S&P and Fitch, will provide much needed funds for the oil-exporting nation, which plunged into recession last year. One […]

No CommentsRead this post »

Ecuador Monthly Costs for Basic Basket of Goods, Family of four

BASIC BASKET OF GOOD FOR FAMILY OF FOUR IN ECUADOR NOVEMBER 2016 COST IS $ 692.56 ______________________________________________________________________________________ NATIONAL INSTITUTE OF STATISTICS AND CENSUS – INDEX OF PRICES TO THE CONSUMER. ANALYTICAL BASKETS BASIC FAMILY BASKET AND VITAL FAMILY BASKET OF THE DOLLARIZED ECONOMY NOVEMBER 2016 Analytical baskets consist of about 75 to 359 products make […]

No CommentsRead this post »

Ecuador: Economic Outlook

September 13, 2016 focus-economics.com reported Ecuador’s dollarized economy is facing myriad pressing issues that stem from subdued oil prices, a strengthened dollar and the aftermath of April’s earthquake. The country has undertaken fiscal and external adjustments that signal its commitment to maintain the official dollarization, which is widely regarded as conducive to macroeconomic stability. Nonetheless, […]

No CommentsRead this post »

Venezuela unraveling at breakneck speed, one dozen eggs $150

OSINT GLOSSARY – GET THE BOOK FOR IMPROVED INTERNET SEARCH RESULTS zerohedge.com reported — The question of whether Socialism can be an effective economic system was famously raised when Margaret Thatcher said of the British Labor Party, “I think they’ve made the biggest financial mess that any government’s ever made in this country for a […]

No CommentsRead this post »

Ecuador: Basic Monthly Cost of Food Basket for family in August is $689

REAL ESTATE IN ECUADOR Ecuador registered an inflation rate of -0.16% in August, according to the latest report by the Consumer Price Index (CPI). eldiario.ec reported the study was published by the National Institute of Statistics and Census (INEC). Accumulated inflation from January to August reached 1.04%, while the annual August 2015 to August 2016 […]

No CommentsRead this post »

Ecuador: Economy to shrink 1.7 percent in 2016

reuters.com reported Ecuador’s central bank said on Thursday it expects the economy to shrink 1.7 percent this year, switching its previous forecast for growth due to lower oil prices and the devastating effects of a earthquake that shook the country in April. The central bank of Ecuador had forecast ed growth of 1 percent for […]

No CommentsRead this post »

Could Ecuador Become Another Venezuela?(observations)

ANONYMOUS POST MADE AT STEVEQUAYLE.COM WITH OBSERVATIONS OF ECUADOR WILL REAL WORLD EVENTS HAPPENING IN ECUADOR LEAD TO ANOTHER VENEZUELA? As an aside, things in Ecuador getting bad, the economy is being destroyed by el presidente and his willing legislators………many here, are saying Ecuador will soon follow Venezuela into hell on earth. They have raised […]

No CommentsRead this post »

Ecuador: Dollarization has brought stability, shielded economy from excesses of populism (Opinion)

Juan Carlos Hidalgo (CATO INSTITUTE)nacion.com(machine translated) What if Ecuador had its own currency? Or rather, what if Rafael Correa had the ability to print money to finance the huge budget hole of your government? The question is timely because it highlights a huge benefit that gives dollarization countries with a sad history of fiscal irresponsibility […]

No CommentsRead this post »

Ecuador: Hotel Occupancies fall 13 percent

july 2016 hotelnewsresource.com reported Ecuador reported decreases across the three key performance metrics. The country’s occupancy fell 13.0% to 59.4%; ADR was down 6.8% to US$97.20; and RevPAR dropped 18.9% to US$57.76. According to STR analysts, Ecuador’s economy is heavily dependent on the oil industry. With crude oil prices down, and Ecuador being the only […]

No CommentsRead this post »

Ecuador: Prices Down in July 2016 (-0.09%)

ELUNIVERSO.COM REPORTED…Ecuador recorded a negative inflation in July. This was announced this morning by the National Institute of Statistics and Census. Inflation in July was -0.09%, according to the latest report. The figure is slightly lower than that recorded in July 2015 and was -0.08%. According to INEC, the divisions that more influeyeron, down in […]

No CommentsRead this post »

Fitch Affirms Ecuador at ‘B’; Outlook Revised to Negative from Stable

Fitch Affirms Ecuador at ‘B’; Outlook Revised to Negative Fitch Ratings-New York-25 August 2016: Fitch Ratings has affirmed Ecuador’s Long-Term Foreign Currency Issuer Default Rating (IDR) at ‘B’ and revised the Rating Outlook to Negative from Stable. The issue ratings on Ecuador’s senior unsecured Foreign Currency bonds are also affirmed at ‘B’. The Country Ceiling […]

No CommentsRead this post »

Ecuador to open trade office in Iran

QUITO (Sputnik) – The Government of Ecuador announced the opening of a trade office in Iran which will aim to promote the “competitive advantages and attractive” the South American country. “We want smart investment that creates jobs, develops technology, value-added, global production chain. We make efforts to generate sustainable investment and sustainable exports,” said the […]

No CommentsRead this post »

Ecuador: Correa states neoliberalism is the failure, not socialism

cuadoran president Rafael Correa on Sunday denounced “fantasies of trickle-down theories” and said that it’s neoliberalism, not socialism that has failed his region. Latin America has largely pursued “socialism of the 21st century,” TeleSUR reports the leftist leader as saying in an interview. Despite current external factors affecting his country’s economy—like the fall in the […]

No CommentsRead this post »

Ecuador: Govt. plans expansion of electronic money for payment

Prensa Latina) REPORTED Ecuador government institutions held today a meeting between programmers with the aim of promoting the development of free software to expand the use of electronic money as a means of payment. The Coordinator Ministry of Knowledge and Human Talent, the Secretariat of Higher Education, Science, Technology and Innovation and the Central Bank […]

No CommentsRead this post »

Ecuador: Puerto Bolivar destined to become largest container terminal in Latin America

joc.com reported a Turkish port operator is determined to transform an Ecuadorian port, most well-known as one of the world’s largest shipment points for bananas, into the largest container terminal in Latin America. Yilport Holding, a subsidiary of the Istanbul-based Yildirim Group, has secured the rights to Puerto Bolivar in Machala City, Ecuador, a city […]

No CommentsRead this post »

Ecuador: Redistribution of Poverty (Opinion)

Leonard Quinde Allieri “Opinion”/PANAMPOST Correa’s administration is very proud to say that over the last 10 years, it has managed to double Ecuador’s GDP. What they do not say is how they have generated this increase — irresponsible spending that has damaged the economy. Correa mismanaged the highest oil revenues in Ecuadorian history. And what […]

No CommentsRead this post »

Economist Intelligence Unit reports Ecuador seventh worst performing economy in world

There are only two dollarized countries among the 20 worst. The figures are from the Economist Intelligence Unit. lahora.com.ec reported Ecuador is the seventh worst economy in the world according to the group Economist Intelligence Unit. A single outgrow Ecuador Venezuela, which ranks first, and countries such as Guinea, Syria, Libya, Azerbaijan and Brazil. The […]

No CommentsRead this post »

Ecuador sinks deeper towards state of outright crisis (Opinion)

Thedialogue.org Ecuador Unsteadied Low oil prices. A stronger dollar. The aftermath of an earthquake. A looming general election with no clear outcome. Every day Ecuador sinks deeper towards a state of outright crisis. In the face of an economic contraction, the country must overcome enormous obstacles to recovery and growth. Its politics do not offer […]

No CommentsRead this post »

Guayaquil Ecuador: Businesses closing, sales slump, insecurity, import issues

elcomercio.com reported at the corner of Mendiburo and Escobedo, downtown Guayaquil, Hermes Rodriguez attends a small pharmaceutical distributor in an establishment that is surrounded by enclosed premises, with signs stuck on the roller doors that advertise ‘rent’. At least there are twelve unoccupied spaces in both senses of that intersection. Only in the building occupied […]

No CommentsRead this post »

Ecuador: Correa says country experiencing “perfect storm” blaming dollar

alternet.org reported Ecuadorean President Rafael Correa rejected the notion that the leftist and revolutionary governments in Latin America have failed and instead posited that the real failure in the region has been the neoliberal economic model. “Inequality in a poor country means misery, generalized misery. We must seek out other forms of developing ourselves that […]

No CommentsRead this post »

Ecuador: Recap of banking crisis of 1999

SPEAK LIKE AN ECUADORIAN – SPANISH SLANG ECUADOR – READ THE BOOK telesurtv.net reported seventeen years ago a banking crisis that had simmered for years finally boiled over. Ecuadoreans protest the neoliberal measures adopted by the government of Jamil Mahuad in order to save the banking industry in 1999. On March 8, 1999, Ecuadoreans awoke […]

No CommentsRead this post »

Ecuador: Dollarization has been monetary suicide per president

telesurtv.net reported… “It’s like fighting in the ring of globalization with a straitjacket,” said Ecuadorean President Rafael Correa. Ecuadorean President Rafael Correa said his country committed “monetary suicide” when it decided to adopt the U.S. dollar in 2000, but that giving it up now would “cause an economic, social and political chaos.” “Very few countries […]

No CommentsRead this post »

Ecuador’s recovery expected to be slow and challenging per consulting company

cemnet.com reported With severe earthquakes, massive debts and low crude oil prices, Ecuador’s way ahead appears uncertain. The country’s future is dependent on the outcome of the 2017 elections and a recovery in oil prices to get the economy moving again in the right direction under positive leadership. By Rob Roy, ROI Consulting, USA. Ecuadorian […]

No CommentsRead this post »

Ecuador: Prices increased nearly 50% in the last decade (Analysis)

VISTAZO.COM – Tristana Santos / Darwin Borja reported although we use the same currency, in the last decade Ecuador prices increased more than twice that of the United States. An analysis of the causes.Between 2006 and 2016 prices in Ecuador have risen nearly 50 percent, according to the Consumer Price Index (CPI) of the National […]

No CommentsRead this post »

Analysis of Dollarization in Ecuador

By Sam Wang, Research Associate at the Council on Hemispheric Affairs To download a PDF version of this article, click here. Every day since 2015, thousands of Ecuadorians have crossed the bridge from Tulcán, Ecuador to the border town of Ipiales, Colombia to go shopping. Goods they purchase in Colombia include food, cars, television, and […]

No CommentsRead this post »

Ecuador returns to the bond market, paying 11 percent

bloomberg.com reported Ecuador is offering bonds in the overseas market with the highest coupon since 2000 as the nation seeks to plug a financing gap following lower oil prices. The South American nation is marketing five-year dollar notes to yield around 11 percent, according to a person familiar with the matter, who is not authorized […]

No CommentsRead this post »

Ecuador: Drastic Dive in Sales Revenues for Hotels, Restaurants in 2016

elcomercio.com reported by Sebastián Angulo Stives Reyes 22 July 2016 00:00 More Rooms and less diners: so was the beginning of the year for the sector of accommodation and food services. The activity decreased by 13.2% in the first quarter of this year compared to the same period last year. This is the worst first […]

No CommentsRead this post »

Ecuador: Correa aims for more debt and taxes

The earthquake in Ecuador on April 16, which resulted in 659 deaths (a figure that is still growing) and thousands of homeless, has also added to the population’s tax burden. The Government has increased VAT from 12% to 14% for a one year. For the same period, companies will pay a 3% tax on profits […]

No CommentsRead this post »

Ecuador: Economy contracts 3% first quarter not including impact of earthquake

Current figure of contraction does not include impact of April’s earthquake. Bank will have to update its statement. Reuters.com reported / Ecuador’s economy contracted by 3 percent in the first quarter of 2016 compared with the same period a year earlier, the central bank said late on Friday. This was driven by a contraction of […]

No CommentsRead this post »

Ecuador: At current oil prices, 20 billion dollars in proven oil reserves declared

Ecuador Confirms Another $20 Billion in Oil Reserves telesurtv.net reported a U.S. oil engineering company said that the Amazonian site has 1,672 million barrels of proven reserves, nearly twice what was previously believed. Ecuador’s proven oil reserves grew recently with the announcement by Vice-President Jorge Glas that Block 43 in the Amazonian province of Orellana […]

No CommentsRead this post »

Ecuador: Correa going after politicians, pubic servants with funds in tax havens

Ecuador’s Correa Takes Aim at Politicians Utilizing Tax Havens Telesurtv.net reported Ecuadorean President Rafael Correa is a fierce critic of tax havens and said he would fight them both domestically and internationally. Rafael Correa is seeking a mandate from the Ecuadorean people to see that politicians and public servants who store their money in offshore […]

No CommentsRead this post »

International Living touting real estate deals in Ecuador

internationalliving.com/Suzan Haskins wrote: Ecuador…the small South American country that sits right on the equator…is blessed with many advantages—particularly its diverse, gorgeous terrain, and fantastic climate. No matter what you’re looking for…from lush rainforest to majestic mountains to sun-kissed beaches, you’ll find it here. And about that climate…daytime temperatures in the Sierras—along the Andes Mountains range […]

No CommentsRead this post »

IMF makes emergency loan to Ecuador of 364 million dollars

IMF granting loan under Rapid Financing Instrument Loan does not come with conditions, money being disbursed immediately enca.com reported the International Monetary Fund said Friday it approved a $364 million emergency loan to Ecuador after the country was hard-hit by an earthquake in April. The money will help the country steady its finances while it […]

No CommentsRead this post »

How Things Change in Two Years – Rafael Correa’s Speech in 2014 at Harvard

IN 2014 SPEECH AT HARVARD RAFAEL CORREA STATED: April 11, 2014 harvard.edu – “Democracy has been firmly established in Ecuador,” Correa said. “Not only democracy in the formal sense, but real democracy, in terms of people’s access to rights, equal opportunities, and dignified living conditions. This is the so-called ‘Ecuadorian Miracle.’ ” Between 2007 and […]

No CommentsRead this post »

Venezuela intentionally crushed the middle and working class

mises.org/Ryan McMaken Unlike other leftist South American regimes, the Venezuela regime has intentionally crushed even the middle and working classes. The economic disaster in Venezuela has prompted many to take a look at the country and attempt to understand what it is that has made things so bad in Venezuela. It’s not enough to say […]

No CommentsRead this post »

Censorship, corruption and fiscal crisis in Ecuador (Public Comment)

Even the 7.8 earthquake, many people began to understand that, in times of crisis, political and economic problems have direct effects internacional.elpais.com (PUBLIC COMMENT)/ Ezequiel Vazquez-Ger wrote During the presidencies of Rafael Correa between 2007 and 2015 oil revenues reached 80 billion dollars. A comparatively bulky amount, taking into account that oil revenues in the […]

No CommentsRead this post »

Ecuador in discussions with IMF for reconstruction funds after earthquake

reuters.com reported Ecuador is negotiating credit lines to finance reconstruction after this month’s devastating earthquake with multilateral agencies that include the International Monetary Fund, a government official said on Thursday. The Andean nation has already opened an emergency credit with multilateral agencies including the World Bank and the Inter-American Development Bank for about $600 million, […]

No CommentsRead this post »

U.S. Officials predict that President Maduro not likely to complete his term

reuters.com/Matt Spetalnick roported the United States is increasingly concerned about the potential for an economic and political meltdown in Venezuela, spurred by fears of a debt default, growing street protests and deterioration of its oil sector, U.S. intelligence officials said on Friday. In a bleak assessment of Venezuela’s worsening crisis, the senior officials expressed doubt […]

No CommentsRead this post »

Ecuador, fifth worse performing economy in the world for 2016 per IMF

THE CURRENT ECONOMIC CRISIS WORSE THAN 1999 – Emililo Palacio wrote… In the first quarter of this year, nearly 100,000 urban workers plunged into the abyss of unemployment in Ecuador. That represents half a million people (considering five members per family on average) who were left without a steady income in just three months. Unemployment […]

No CommentsRead this post »

Ecuador, Goldman Sachs Gold Deal in 2014

wallstreetexaminer.com/David Zeiler /June 6, 2014 wrote: Unbowed by fines and new regulations, Goldman Sachs (NYSE: GS) has simply looked elsewhere for fresh victims. In a deal that barely registered with the mainstream media, Ecuador’s central bank agreed earlier this week to swap half of its gold reserves – worth $580 million – with Goldman in […]

No CommentsRead this post »

REASONS WHY VENEZUELA ON VERGE OF COLLAPSE

panampost.com reported — Following the publication of Sabrina Martin’s article in the PanAm Post, “Looting on the Rise as Venezuela Runs Out of Food, Electricity,” several readers have asked how Venezuela, a country regarded as a future Australia in the 1960’s and 70’s, entered its current economic crisis. There are hundreds of reasons for this. […]

No CommentsRead this post »

Economists say larger economic problems still lie ahead for Ecuador

nytimes.com/ NICHOLAS CASEY reported In Ecuador, a 7.8-magnitude earthquake a week ago helped set off what many say was a debate years in the making. Over the last decade, the government made significant investments in infrastructure and education while depleting emergency funds set aside for disasters like earthquakes, analysts say. Spending on government salaries also […]

No CommentsRead this post »

Ecuador: No choice but to go to the IMF because its has no choice says economist

ft.com reported the devastation in Portoviejo is so complete that Johnny Quijano does not know how Ecuador will recover. A week after a powerful 7.8 magnitude earthquake flattened much of the centre of the city of 220,000 people and countless other towns along the country’s Pacific coast, despair and resignation have set in. “Ecuador simply […]

No CommentsRead this post »

Ecuador Earthquake: Tax Measures put into place to pay for devestation

BBC.com reported Left-leaning President Correa said all levels of society would be expected to contribute to rebuilding funds, even if they did not live in the worst-hit Pacific region. Among the measures he announced in a televised address late on Wednesday: The sales tax is to be increased from 12% to 14% for one year […]

No CommentsRead this post »

Ecuador Earthquake: President Correa institutes tax measures to help rebuild

CNN.com reported In an effort to boost reconstruction efforts, Ecuadorian President Rafael Correa announced a series of financial measures, including a tax increase, on prime time television. “Rebuilding the affected areas will take years and cost millions of dollars,” he said. “The short term costs are significant.” He announced a raft of short-term and one-time […]

No CommentsRead this post »

Ecuador: Financial Toll could reach 3 billion dollars from Earthquake

abcnews.go.com reported…. While the human tragedy of Ecuador’s most-powerful earthquake in decades is still sinking in, the government is just beginning to evaluate the monumental task of rebuilding. President Rafael Correa says it could cost as much as $3 billion to rebuild. That’s about 3 percent of Ecuador’s gross domestic product. He told reporters Tuesday: […]

No CommentsRead this post »

Ecuador: New Tax Proposal to levy tax on those taking more than $1098 out of the country

ecuadortransparente.com reported new taxes proposed by the new project called Act Balancing Public Finances, sent yesterday, Wednesday, March 30, 2016, at about 10 pm to the National Assembly. It is established that the currency cash carry Ecuadorians and foreign citizens, adults who leave the country or minors who are not traveling with an adult, up […]

No CommentsRead this post »

Ecuador: Proposed tax increases on cigarettes, liquor, soft drinks may raise 300 million dollars

CRE.com.ec reported Government prepares project to raise taxes on cigarettes, liquor and sugary drinks Morona Santiago.- President Rafael Correa, said in his work report No. 467 that his government is preparing a package of reforms to cope with falling tax revenues. This includes raising taxes on cigarettes, alcohol and sugary drinks. They are 300 million […]

No CommentsRead this post »

Living in Ecuador is more expensive every day

Ecuador is more expensive November/2015 expreso.ec reported prices are growing twice in the United States almost every year since 2008 – CPI has dropped in the last quarter by the economic slowdown Living in Ecuador is more expensive every day. It is the citizens and business insight. But it is also what the figures reflect […]

No CommentsRead this post »

Misery Index: Ecuador ranks 73 out of 108 countries (CATO) as of 2014

CATO.org/Steve H. Hanke reported – Every country aims to lower inflation, unemployment, and lending rates, while increasing gross domestic product (GDP) per capita. Through a simple sum of the former three rates, minus year-on-year per capita GDP growth, I constructed a misery index that comprehensively ranks 108 countries based on “misery.” Below the jump are […]

No CommentsRead this post »

Ecuador’s oil troubles worse than other oil exporting countries (opinion)

Steve St. Angelo, SRSRocco/silverdoctors.com: There’s an ongoing catastrophe taking place in Ecuador. Not only has a significant part of the Amazon been polluted by toxic waste oil left behind from the wonderful folks at Texaco when the company started drilling for oil in Ecuador back in the 1970’s, but the low oil price has totally […]

No CommentsRead this post »

Brazil: Financial Crisis Prompts City Governments to Cut Funds for Carnival

Folha de São Paulo reported the decision of many local governments in Brazil to cut public funding for Carnival this year. Due to the economic crisis currently unfolding, there are at least fifty-three cities across the country that have decided to make major cut backs or de-fund entirely the two-week national holiday. In Minas Gerais […]

No CommentsRead this post »

Ecuador Public Debt is at sustainable level per manager of Central Bank

(Prensa Latina) The public debt of Ecuador is at sustainable levels, as 33 percent of the Gross Domestic Product (GDP) is still below the limit established by the Constitution, explained today the manager of the Central Bank, Diego Martinez. The respect to the limit imposed in the legislation approved in 2008 was something the oficial […]

No CommentsRead this post »

Ecuador, Colombia, Venezuela selling crude below cost of production

reuters.com reported a more acute crude price slump this month has put several South American countries in the difficult position of selling oil for less than what it costs to produce, according to traders and sources at three companies in Colombia and Venezuela. So far, the most affected crudes are blends formulated with naphtha and […]

No CommentsRead this post »

Ecuador: Lowest unemployment rate in the region says national survey

telesurtv.net reported Ecuador’s unemployment rate was the lowest in the region, according to a new figures released by the National Survey of Employment and Unemployment. At only 4.8 percent, Ecuador has the lowest unemployment rate in Latin America, considerably lower than its neighbor Colombia, which has an unemployment rate of 9 percent, according to the […]

No CommentsRead this post »

Ecuador’s country risk one of highest in region due in part to collapse of oil prices

IRAN COMING INTO THE WORLD OIL MARKET TO PUT FURTHER PRESSURE ON OIL PRICES elcomercio.com reported the end of international sanctions against Iran, which became effective last Saturday (January 16, 2016), also assumes the termination of this nation oil embargo. Iran will play a decisive role in the energy market and expects to quickly increase […]

No CommentsRead this post »

Ecuador Begins 2016 with high debt, Correa asks creditors for patience

eluniverso.com reported the Government had a floating debt of $ 2,456 million at December 31, 2015. The regional governments, as well as manufacturers, service providers, teachers, are the sectors most affected them this debt. That can be seen with the figures registered by the Ministry of Finance. According to this Ministry, the government accrued (billed […]

No CommentsRead this post »

Venezuela Declares Economic, Financial Emergency for at least 60 days

Expreso.ec reported the president of Venezuela, Nicolas Maduro, the economic emergency decreed yesterday in Venezuela, giving it full powers to legislate in this area for 60 days. The move comes amid the worst crisis of the past 35 years. With a barrel of oil declining, with a paralyzed private productive apparatus because of the lack […]

No CommentsRead this post »

Ecuador: Remittances from abroad down due in part to depreciation of euro

Giovany Astudillo/elcomercio.com reported Ecuador received US $ 1 742.1 million between January and September 2015, according to a report by the Central Bank of Ecuador. This represents a reduction of 112.8 million over the same period of 2014. In the first nine months of that year arrived US $ 1 854.9 million. The main cause […]

No CommentsRead this post »

Ecuador: Inflation for 2015 declined to 3.38 percent

plenglish.com reported: Inflation declined in Ecuador in 2015 to 3.38 percent – Cuenca had highest reported increase in Ecuador Prensa Latina Ecuador’s inflation declined in 2015 to 3.38 percent, according to a report by the Consumer Price Index (CPI) today. The National Institute of Statistics and Census (INEC) published the report contrasts the information with […]

No CommentsRead this post »