After the uncertainty for businesses due to vaccines and attacks, the main obstacle to new productive investment is the lack of financing at good terms, interest rates and easy access for investment in factories, machinery, facilities and technology (known as gross capital formation) to generate economic growth and greater employment.

According to the latest Doing Business study by the World Bank (ease of doing business in 190 countries) in 2019, we are in the lowest place -129- among Latin American countries, while Chile is in 59th place. In the parameter of obtaining credit, Ecuador is in 119th place, while is Colombia at 11.

Outside of these countries, we noted that Panama provides 102% of its gross domestic product (GDP) in loans, while Ecuador provides an average of 50%.

In Ecuador, the Board of Financial Policy and Regulation sets interest rates for each economic segment through anti-technical ceilings, such as those in resolution 070, which recently set maximum rates for the corporate and business segments. These rates have increased twice this year, from 8.86% to 10.01% and from 9.89% to 10.74% per year.

In the microcredit segment, which consists of 1.9 million entities, the interest rate exceeds 20% per year. In Panama, a country that is also dollarized, the business rate does not exceed 8.5% per annum, and the mortgage rate is 6.5% per annum for a period of 15 years.

The esteemed reader will understand that in Ecuador we are swimming against the current, taxes are rising when they should be lowered – as was done last year – and interest rates are rising when they should be lowered. You will ask me further, how can it be when the liquidity in the financial system is limited, and the state has no liquidity either?

Here are some recommendations: a) Reduce bank reserves to improve system liquidity; b) Banco del Pacífico – very solvent – can lead to a reduction of interest rates in all credit segments; c) Complete the merger of CFN and Banecuador for the immediate creation of a new, technological, apolitical development bank, with professional management, to attract international financing at a low cost and for long terms (more than 15 years) and channel it into the first and second floors for the development of Ecuador, as was done for the teak industry; d) Issue a regulation on the Fintech law, so they can create means of payment and compete with traditional banks, improving the banking system in Ecuador; e) propose the creation of artificial intelligence zones (ZIA), in coordination with municipalities, academia, banking and industry, attracting entrepreneurs and high-level companies investing in technology to improve productivity and exports; f) New companies in Ecuador can get support and funding from institutions such as AEI-Alliance for Entrepreneurship and Innovation (aei.ec), Kruger Lab (krugerlabs.com), Innobis (@innobis_ec). (OR)