Ecuador: public debt increases almost fourfold in ten years

Posted on July 30, 2017 • Filed under: Economy, Ecuador, Politics 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 $ 3,337.76.

On Friday night, President Lenin Moreno publicly announced the amount of state obligations, including historical public debt, short-term operations, oil liabilities and others that would become commitments.

It was about the presentation of the pro forma budget for 2017, which will arrive tomorrow at the Assembly.

Economic experts consulted by this newspaper indicate that this debt arose from the construction of works with supposed surcharges such as hydroelectric and the accelerated growth of bureaucracy.

Moreno attributed it, in his speech last Friday, that in the previous government of his coidiary Rafael Correa took “decisions that were not measured.”

Only in the historical public debt (internal and external) did he spend in ten years of

$ 13,482.4 million to $ 41,893 million, grew almost fourfold.

Ex-President Alberto Dahik was not surprised by the figures. “The amount of the debt is the real, the truth, and the president (Lenin) Moreno confirmed what serious people we revealed a long time ago and the previous regime denied,” he says.

It assures that the debt is ‘manageable’, but if the previous economic model is changed.

Alberto Acosta Burneo, editor of Weekly Analysis, argues that the public debt item does not have to scare the Ecuadorians; What should cause concern is how much it costs to serve that debt.


“This debt is very expensive, the new commitments have been acquired at 9% interest and in very short terms (5 to 10 years), is equivalent to buying a house of $ 50 thousand three years and 20% interest. .. will end in bankruptcy. “

With this coincides the analyst Fidel Márquez, who assures that the announcement of the government to publish all this information in the websites of the state institutions will help to improve the perception of the country in the international markets. “What makes the loans that we request or the bonds that we put increase their risk is the lack of transparency that has existed, without a doubt it is a wise measure to generate confidence internationally”.

For the ex-president Leon Roldós, another of the issues that the current Government should also clarify are the commitments made with China. “The information fraud made by Correa did not allow us to know clearly how the loans were negotiated with the Chinese, it is a grossly bulky debt, all this has to be renegotiated,” he says.

Roldós says that this process of renegotiation must be done by a team of people who create tranquility: “One serious mistake that Moreno has made is to keep Vice President Jorge Glas at the head of the Productive Council when the research on Odebrecht has not yet passed.”

Yesterday, in his Twitter account, Moreno wrote: “Being revolutionary is telling the truth and not hiding reality from the country.”

The presidential candidate Guillermo Lasso said in that network: “On July 20 we notice what officially officially informed the licensee: the debt is close to 60,000 million …” READ ARTICLE

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