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Government of Ecuador announces cut in public spending to face the pandemic

2020-05-19T16:22:59.251Z


President Ecuador, Lenín Moreno, announced on Tuesday a series of measures to face the consequences of the coronavirus pandemic.


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A traffic light system will help reopen Ecuador 2:03

(CNN Spanish) -  President Ecuador, Lenín Moreno, announced on Tuesday a series of measures to face the consequences of the coronavirus pandemic.

The decision was made to cut public spending of more than US $ 4 billion to prioritize health, education, security and social protection.

In a televised statement, Moreno reported that the country will stop receiving $ 8 billion due to the worldwide emergency.

Covid-19's impact on the flower industry 5:16

That figure adds to the $ 4 billion deficit in the state's general budget. In total, revenues of $ 12 billion were lost.

In addition, the president noted that 150,000 Ecuadorians would lose their jobs due to the closure of companies.

To avoid crowds and optimize resources, the working day will go from eight to six hours a day with an equivalent remuneration and teleworking will be prioritized.

Health personnel, the National Police, the Armed Forces and security entities are excepted.

Teachers' hours will be reduced by only one hour. "This decision will allow us not to untie any teacher," said Moreno.

A traffic light system will help reopen Ecuador 2:03

They also plan the elimination of seven public companies. Among these, the airline TAME - which lost more than 400 million dollars in the last five years - and will go into liquidation. The routes that connect to places that do not have private alternatives will be preserved.

Some embassies, diplomatic offices and 70 foreign service officials will return to the country.

Regarding the reorganization of the external debt, Moreno pointed out that the payment of US $ 341 million in March allowed a saving of US $ 1,300 million for interest and, in addition, he managed to obtain US $ 1,400 million from multilateral organizations under "very favorable" conditions.

He announced that a new system will be implemented that will allow the reduction of the price of Extra gasoline and the Ecopais, from US $ 1.85 to 1.75; and the price of diesel at one dollar.

Source: cnnespanol

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