Ecuador’s fiscal cash remained at an all-time low, standing at $94.9 million as of December 1, 2023, according to a report from the central bank’s Financial Monetary Bulletin.

After the inauguration of the new government of Daniel Nobo Azín, the same president and Minister of Economy and Finance, Juan Carlos Vega Malo, announced that the fiscal fund was in very small numbers: 180 million dollars at the time, and it is moving: on the last day of November, the fiscal fund was is 419.7 million dollars, but on December 1, when salaries in the public sector were paid a day later, the funds decreased more sharply.

The decrease in fiscal resources is already becoming more noticeable. Pensioners of the Armed Forces protested against non-payment of pensions. Admiral Alan Molestina, of the Issfa Guayas and Littoral Defense Front, explains that there is uneasiness among retirees because pensions that are normally paid on the 30th of the month are already a week late this Thursday, December 7. Such payment has not been made.

The reason given by the Institute for Social Security of the Armed Forces (Issfa) is that they did not receive a transfer corresponding to 60% of their pensions from the state. Molestina believes that the government should immediately make the payment because it is a vulnerable group.

Pensioners began holding peaceful protests across the country. Molestina says that this Wednesday it was held under the Government, and that it will continue.

Pension protests

On the morning of December 7, a pensioners’ protest was held at the foot of Issfa, in Guayaqiul Photo: Issfa Pensioners

The pensioners’ protest was also held this Thursday at the Plaza Grande in Quito. Several protesters demanded immediate payment of salaries. On the spot, Ángel Fernández warned that he would continue with the protests: “We will come with more force on Friday or Monday,” he said at the foot of the Carondelet Palace.

When asked by Molestin about whether he is thinking about the non-payment of the Government, but also the knowledge that there is no money in the fiscal coffers, he claims that ISFA pensioners understand the state of the state, but they think that it is only as a loan to the National Financial Corporation (CFN) for paying public servants, the same should be done for Issfa. 20 million dollars are needed for Issfa.

They hope that the economic measures taken by the Government will be able to generate the necessary funds. In any case, note that other things can be cut, but not wages or pensions. This considering that the economy moves liquidly. Without it, he says, citizens will soon not be able to pay their debts to the financial system, nor buy food, goods and services.

Suppliers would be offered paper payments

Meanwhile, Marco Legízamo, a representative of the Association of Government Suppliers, says that a few days ago a group of representatives of 120 government suppliers owed $10 million met with one of the ministry’s undersecretaries. Then, according to Legízam, the authorities explained to them that the fiscal situation was very complicated and that they had to give a loan to the public bank to pay salaries for November. But that money must be returned to you as soon as possible.

In addition, they made known their concerns about the payments that must be made to the decentralized autonomous governments (GAD) and the Ecuadorian Social Security Institute (IESS). In this regard, it was explained to the suppliers that one of the options would be to pay with treasury certificates (Cetes), which they would have to sell on the secondary market.

Among the suppliers affected by non-payment from the state are the medical services, construction, technology, protection, cleaning and other sectors.