Ecuador will withdraw from the OPEC due to financial problems
Due to the financial problems the South American nation is going through it plans to abandon the international organization by January 1st , 2020
Ecuador announced on Tuesday it will leave the Organization of Petroleum Exporting Countries (OPEP) next year. The decision was taken due to the financial problems the country is going through related to the internal issues and challenges that the nation must assume in terms of fiscal sustainability. This measure conforms to the National Government’s plan to reduce public expenses and generate new income.
In a statement, the Ministry of Energy and Non-Renewable Natural Resources indicated: “The Ecuadorian Government has decided to cease to belong to the Organization of Petroleum Exporting Countries (OPEP), since January 1, 2020″.
Before the bulky fiscal deficit, the government of President Lenín Moreno, has had to resort to more external indebtedness in addition to issuing sovereign bonds on several occasions that exceed 10,000 million dollars of multilateral organizations, which will be disbursed in three years.
This would be the second time that Ecuador withdraws from OPEP, the first was in 1992 and returning in 2007. Thus, through its permanence in the international organization the South American nation “has always been a constructive member of the organization and will maintain the bonds formed with the countries that are part of OPEP”as stated by the holder of the country’s energy portfolio.
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