At least three products that Ecuador exports have been affected by military conflict between Russia and Ukraine.
According to the Minister of Economy, Simón Cueva, exports of bananas, shrimp and flowers have been reduced, which affects the national economy.
He added that there is support from the commercial attaché offices to help the private sector find alternative places of destination and they are working on it.
He indicated that the war could affect the growth rate of the world economy and inflation.
He explained that there is a increase in oil prices and various raw materials or fertilizers for agriculture.
Russian Ambassador in Ecuador says that mechanisms are being sought to trade with Ecuadorian companies
“Ecuador will indeed be affected, therefore, to the extent that the growth of the Ecuadorian economy could be impacted to a certain extent by this trend, but at the same time Ecuador has laid more solid foundations to face this situation, part of this is to have an orderly financing plan”, he said, after presenting the rendering of accounts of that State portfolio for the year 2021 and that the impact could be due to inflation he added.
Cueva mentioned that it is also true that the country benefits from slightly higher oil prices, but he clarified that it is temporary, so those temporary income They will be used in temporary expenses and eventually for the recovery of economic activity, repayment of pre-existing debts, for liabilities.
He specified that the net effect in the state budget is $48 million for each additional dollar of oil price maintained through 2022.
For this, he explained, they take into account income, payments that have to be made due to higher fuel import costs, transfer payments to local governments and others.
He asked to take into account that there was landslides in pipelines in 2021, which represents a loss of income that he estimated at about $350 million.
Goals, spending and debt reduction, among the topics of interest for review by the International Monetary Fund
Regarding the economic program that Ecuador maintains with the International Monetary Fund (IMF)specified that a mission from that entity is in the country reviewing the agreement that expires at the end of 2022, so there is still time to make an evaluation of what may come next.
About the intention of the Assembly to repeal the tax reform, Cueva recalled that, according to the Constitution and the laws, the President of the Republic is the only authority which has a legislative-tax initiative.
“The Assembly has no authority to initiate tax initiatives, if there is not previously the initiative of the Executive power, therefore, we think that within that parameter and respecting the laws of the Republic, the Assembly will proceed in accordance with that regulation, ”he indicated in a virtual presentation .
With 104 votes, the National Assembly resolves to process two projects that aim to repeal the tax law
Regarding accountability, the official stated that there is economic recovery, that there was a “historic” reduction of the fiscal deficit and that there is support from the international community.
In addition, it has strengthened dollarizationthat there is a recovery in tax collection, more liquidity in the economy and that there is recovery of deposits and credit for businesses and homes. (I)
Source: Eluniverso
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