After the recent triumph of Javier Milei in Argentina and the inauguration of Daniel Noboa in Ecuador, I decided to write a second part to find out how these new governments are perceived.

In order to understand the immediate perception of economic entities, we know that the risk of the country of Argentina – until November 24 – fell from 2400 to 1962 points, while that of Ecuador – until November 23 – increased from 1750 to 1925 points.

Announcements by Milei that they will privatize Yacimientos Petrolófilos Fiscales –YPF– (part of private); to reform the state and reduce public spending, reduced country risk and raised the stake of YPF, listed on the Nasdaq NY, by 64%.

In Ecuador, on the other hand, after the visit of President Noboa to the USA, the country’s risk increased almost to the level of Argentina, concluding that economic entities are worried about the initial fiscal fund, which did not reach 180 million dollars in November.

More than a minister of finance, Ecuador needs a good treasurer of the nation, who has diagnosed the fiscal situation and prepared an immediate plan to obtain new funds to cover expenses until the end of the year, who prepares the budget for 2024 and cuts spending. public, not neglecting health, education, public works and the electrical sector.

To stimulate economic growth and reduce country risk, I propose the following measures:

1.- Intervene with specialized teams in the most important institutions, such as EMCO, Petroecuador, Flopec, CNT, CNEL, Celec, IESS, CFN, BanEcuador and Sercop. Those who do not work must be merged or eliminated, and the excess wages must be reduced.

2.- Request a legal report from each public company on its accounting or legal contingents and their potential economic effect. (There are millions of unjustified lawsuits between state-owned companies).

3.- Request a report from the State Attorney’s Office on all pending lawsuits, for or against the state, and possible economic contingents that we will have in 2024 (the Chevron case, for example).

4.- Order immediate repair and maintenance of hydroelectric and thermal power plants in order to eliminate power outages.

5.- Prioritize the exploration and exploitation of natural gas from the Gulf of Guayaquil, because we will have cheap energy that pollutes the environment less, we will be able to reduce subsidies for diesel and LPG by approximately 900 million dollars per year. According to Petroecuador, the fuel subsidy is projected to be $3.26 billion at the end of 2023.

6.- Intervene in IESS, changing its processes by applying artificial intelligence and avoiding corruption in public procurement.

7.- Intervene in state refineries in order to improve their efficiency.

I estimate that, in the short term, public spending can be reduced by $500 million, and on the revenue side, in the medium term, oil production can be improved by 100,000 bpd, and natural gas production gradually, replacing the equivalent of about 100,000 bpd; In a few months, we will notice a reduction in the risk of the country due to the perception of economic entities, as there will be more income in the state budget. (OR)