President Guillermo Lasso affirmed that all negotiations with China will be public

President Guillermo Lasso stated that all negotiations with China will be public. During the link “Let’s meet for citizenship”, the President criticized the confidential handling that was given, in previous governments, to debt contracts tied to the sale of oil.

In that sense, he pointed out that will deliver to the Attorney General of the State “all documentation called confidential”, in addition to the Prosecutor. The Attorney General, he indicated, will be given the information to evaluate the possibility of initiating legal actions abroad or to participate in trials that have already been initiated and in which Ecuador also appears as a victim. In the case of the Prosecutor’s Office, the documentation delivered, if applicable, will allow legal action to be initiated in the country.

Lasso indicated that all these actions will be so that Ecuador “can manage its oil sovereignly without being conditioned by contracts that have been harmful.” In this sense, he said that there would be no problem selling oil to China; but yes with the fact that it ends up in the hands of intermediaries.

The President explained that this was one of the two points that were addressed on his trip to China days ago. On the issue of the debt with the Asian nation, he explained that it is approximately $4.6 billion, of which $2.5 billion are credits to the Chinese Eximbank and the Bank of China and, aside, there are $2.1 billion with the China Development Bank (CDB). In the latter, he said, is where the problem exists since it is a balance of a financial negotiation tied to oil.

$9.68 billion in crude guarantees a $2 billion tranche of Chinese debt

Lasso stated that The country pays freight (ship fees) to send the oil to China, but in reality it ends up being transported and sold to nearby countries, such as Peru. “There is a good receptivity, but everything goes through a negotiation process that takes time,” said the President of the Republic.

Another of the points addressed during his visit to China was the Free Trade Agreement (FTA). President Lasso said that the agreement is expected to be ready for China’s meeting with Latin American countries to be held in October in Guayaquil.

tax reform

Regarding the Organic Law for Economic Development and Sustainability, President Lasso indicated that the tax adjustments are based on income of $2,500 per month. Therefore, those who earn $300 and $500 have not been touched.

This despite the fact that the Government previously said that the tax reform established that the increase in this tax was for those who earn more than $2,000 a month.

“What the law provides for are tax adjustments for those who have monthly income of $2,500 or more. If we see that the economy is reactivated, there should be no doubt that decisions will be made to favor those who today feel a great sacrifice and that they are contributing to the stability of the Ecuadorian economy”, remarked Lasso. (I)