Ecuador announces new economic measures

Among the adjustments dictated by the president is a cut in public spending of $ 4,000 million

The President of Ecuador, Lenin Moreno, announced on Tuesday new economic measures that, in his opinion, seek to combat the health emergency in the country. The executive indicated that the measure implies a cut in public spending of USD 4 billion. The cut will be adjusted to USD 980 million of the wage bill; USD 400 million of goods and services; USD 1.3 billion in investment and USD 1.3 billion for external debt restructuring.

Among the seven measures dictated by the president is a drop in the price of fuel, due to the drop in the price of crude oil. The Government of Ecuador will reduce the price of extra gasoline and the eco-country, from USD 1.85 to USD 1.75, and the price of diesel to USD 1.

The Public Sector Day will be reduced by two hours. “In the case of the executive function, to take care of the health of our public officials, avoid crowds and to generate savings, the servers will work six hours a day,” Moreno reported. In the case of teachers, it will be reduced by one hour except for doctors, police, the armed forces and security forces.

The reduction of the size of the State with the closure and merger of 10 companies such as: the airline Tame, Real Estate, Railways, Seeding, Public Media, Ecuador Post and others. Starting on May 25, the “Reactívate Ecuador” line of credit will be accessible in order to cover payrolls and operating costs for micro, small or medium-sized companies.

As a fifth measure, Moreno indicated the closure of five embassies and diplomatic offices in Malaysia, Iran, Nicaragua, representation before the Oasi and the Secretariat of the Andean Parliament. The sixth measure includes the reduction of expenses in the State Security Council that includes until the end of the month the savings in the budgets between 10 and 15% of expenditure. And the seventh and last measure includes the Restructuring of public debt.


Source: elcomercio

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