2023-11-10 12:02:45
That index, which measures the risk that a country will fail to meet its commitments and pay its debts, has had an increase of 185 points in two days. The level is again around 2,000 points.
On November 8, 2023, an increase of 74 points in the country risk was recorded. For this November 9, 2023, this index, which measures the risk that a country stops meeting its commitments and paying its debts, had an additional increase of 111 points.
Thus, Ecuador’s country risk is located at 1,934 points, that is, it is once again around 2,000 points because foreign banks and investors have doubts about the economic plan of President-elect Daniel Noboa.
His statements during his tour of the United States exacerbated fears about Ecuador’s complex fiscal situation. Noboa announced a tax reform that will lower taxes in circumstances where the gap in public coffers continues to increase
According to an analysis by Jaime Carrera, member of the Fiscal Policy Observatory, as of October 2023, the fiscal deficit (more expenses than income) totaled $3,581 million.
This represented twelve times more than the $249 million deficit recorded in October 2022.
With less income and more expenses, the gap in public coffers will be at least $5 billion until December 2023.
The last month of this year, which will be the first month as president of Noboa, will be complex because double salaries must be paid in the public sector (tenths) and claims for arrears are accumulating from sectors such as municipalities, prefectures and the IESS.
The outlook does not seem to be easier in 2024. Carrera points out that the fiscal deficit will be at least $6,000 million and that interest will also have to begin to be paid on the external debt bonds renegotiated during the Government of Lenín Moreno and part of the loans received from the International Monetary Fund (IMF). (J.S.)
La Hora Newspaper
#Country #risk #rises #consecutive #day #Daniel #Noboas #tour #Nación