The period in which the state debtors repay their obligations could last from 24 months (2 years) to 72 months (6 years). This is through the reform of Article 277 of the Organic Administrative Code (COA), which BanEcuador presented through a bill on January 12.

The state entity reminded that previously in October 2023, during the tenure of the previous Government, the reform that is currently under consideration was presented as a draft decree-law, but this intention did not succeed.

BanEcuador pointed out that the short duration of the currently available payment facilities, i.e. two years, in Article 277 of the COA, “has discouraged sovereign debtors from opting for this alternative. The originally established terms of 24 months or 2 years are unsustainable for many”, said the state entity.

In addition, BanEcuador highlighted the existence of another legislative proposal that supports the one they introduced in the legislature, which was recently introduced by a member of the assembly. “We seek to join forces and coordinate the necessary actions aimed at the joint promotion of the draft Organic Law reforming the Organic Administrative Code (COA) and to significantly contribute to the development and success of the proposed initiative, thus ensuring lasting benefits for the citizens of Ecuador,” the entity indicated.

If the reform is achieved, according to the state bank, “an effective solution to this challenge would enable defaulting sovereign debtors to meet their obligations in a more realistic and manageable way, with the aim of concluding their outstanding obligations, thereby creating financial relief.” and economical in our debtors.” They added: “We are open to establishing a constructive dialogue and hand in hand with the National Assembly in order to achieve common goals…”.