Posted On 29 Aug 2017
The country’s domestic bonds debt increased from $ 12,457.3 million to $ 14,990.1 million between December 2016 and June 2017, according to the Financial Report. The figure is higher than that of six years ago, when it was $ 4.506 million in June 2011.
In an effort to obtain liquidity, the previous administration undertook several financial operations with the Ecuadorian Institute of Social Security Institute (IESS) and the Central Bank of Ecuador.
Now, these two entities are the largest holders of private bonds. The first with $ 7,764 million, according to the president of the IESS Board of Directors Richard Espinosa, and the second with $ 3,656 million.
In the case of the Central Bank, after having given at least $ 5.8 billion in liquidity and after a restriction of information in this subject, it is now known that most of these resources ($ 4.3 billion) were first Treasury Certificates (Cetes) and then converted into internal bonds; and $ 1.5 billion more were directly invested in those.
The Central Bank informed this Journal that on August 7, 2017, it had a balance of $ 48.8 million in Cetes. These papers back the issuance of Central Bank Securities (TBC), whose balance is equivalent, it stated.
For former Minister of Finance Fausto Ortiz, this exchange makes the International Reserve less liquid. While the Cetes had terms of less than one year, these bonds mature in five and nine years. (I)