Ecuador cuts ministries and increases gas prices to deal with the economic crisis

The Ecuadorian government will cut down 20 federal institutions, including seven ministries, and raise the price of petrol to combat the country's economic crisis, Ecuadorian President Lenin Moreno said Tuesday in a statement. says the curator, also predicts changes in the fuel subsidy policy, a sensitive issue that has already led to protests across the country.

"We will tighten the belt even more in the Executive," said Moreno, accompanied by the secretary-general of the presidency, Eduardo Jurado, and the finance minister, Richard Martinez.

The austerity package eliminates 20 federal institutions, including the Ministry of Justice and the secretariat for government communication, which will be included in other management boards. In addition, the & # 39; super & # 39; petrol price, the most expensive on the market, up 20%, jumping from $ 2.48 to $ 2.98. Another measure is the closure of the embassies of Belarus, Angola, Algeria and eight other consulates.

"We will also optimize the subsidy for diesel for business," Jurado said, adding that the plan does not include carriers. According to the secretary, "fuel subsidies cost Ecuador more than 3 billion dollars".

Ministers of the government will also be hit by the cuts. Top-level telephony services are no longer paid and security services are suspended for anyone who has no positions deemed to be at risk. In addition, Moreno will sell approximately 1,000 Executive vehicles and prohibit state companies from directly accepting works or services.

According to Minister Martinez, the cutbacks will enable the government to save $ 1 billion annually during the economic crisis.

The action plan will also try to revitalize the productive sector by providing a $ 1.3 billion loan to the construction sector, the agricultural sector and small and medium-sized enterprises.

The government says the reforms are necessary to resolve the situation in Ecuador after the & # 39; excessive debts & # 39; by former President Rafael Correa (2007-2017), who left the country with a debt of 60% of the GDP of Ecuador. The measure aims to reduce the budget deficit of Ecuador to 1% by 2021 and to end Moreno's mandate as president. // AFP, ASSOCIATED PERS

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