Posted On 17 Jul 2017
The path is laid out. The government of Lenin Moreno has an economic program to circumvent the “difficult” situation inherited from the administration of former president Rafael Correa.
According to official estimates, the economic plan would achieve a stable economy in 18 or 24 months.
Minister of Economy and Finance Carlos de la Torre explained that the measures, which do not yet have concrete figures, have two fundamental objectives: to convert the private sector into “engine of the economy,” and that dollarization remains solid.
These would be the six axes of the state program.
1.- Reduction in the use of cash: The Ministry of Finance believes that alternative means of payment such as electronic money should be promoted.
2.- Redistribution programs: Programs such as ‘Casa para todos,’ ‘Mision Ternura,’ and plans to increase the Human Development Bonus up to 150 dollars and make the Manuela Espejo Mission operational again will be financed with public resources.
3.- Expansion of cheap credit: Public banks will be the protagonist of the expansion of loans at lower costs.
4.- Growth and employment: The creation of technical universities and public-private partnerships will be promoted to generate jobs, attract foreign investment and “maintain the purchasing power of the Ecuadorians.”
5.- Fiscal Sustainability: Moreno’s first challenge will be to improve the public debt conditions left by his predecessor Rafael Correa.
6.- Increased sales: Exporters will have incentives, including the so-called ‘fiscal devaluation’ that would reduce private contributions to the social security. (I)