Joint interview by Diario El Universo and Diario El Comercio “We are facing war, an invisible enemy. And to win it, you have to fight it together. Each effort serves from its own trench. Overcoming problems involves us all, all of us. Each of the Ecuadorians is part of the solution, it cannot be part of the problem, because together we are going to start again. ” Thus, President Lenín Moreno speaks of the need to keep a united country to face the coronavirus pandemic.
Economy
The finance minister said that with the financing of the multilaterals, and the bilateral debt with China, $ 2 billion could come in the coming weeks. You said an additional $ 2.5 billion will also come, where would that money come from?
The $ 2 billion from the Monetary Fund ($ 500 million), World Bank ($ 376 million), Inter-American Development Bank IDB ($ 25 million), CAF ($ 51 million) and the China Development Bank ($ 1 billion). The $ 2.5 billion is managed by the same multilaterals and commercial banks. Let me explain: after the minister’s announcement, in a few days the IMF has confirmed to us that the value of the rapid financing instrument will double, going from $ 500 million to $ 1 billion; the IDB has committed an additional $ 250 million and the World Bank $ 150 million more. Only there is $ 900 million above what was initially announced. In the medium term, we have lines that are being worked with investors who trust the country despite the complexity. The detail will be announced once those lines are closed.
These days, the payment of $ 540 million was planned, between amortization and interest on commercial debt (2020 bonds). It was decided to postpone the payment of some $ 200 million of interest, to free up funds and redirect them to the health emergency. In turn, the principal of the bonds ($ 325 million) was paid to keep the door open to more resources. This situation forces us to prioritize spending, as well as looking for alternatives with adequate liability management, so that the scarce resources that are in the Fund are used in the best way.
The health sector is our priority. For example, this week we have paid more than $ 95 million to healthcare providers that deliver supplies and devices, security and surveillance, cleaning of hospitals, hospital feeding, etc. We also advanced the payment of compensation to public servants in the health sector for $ 76 million.
What tranches of debt are to be renegotiated or sit down to discuss with creditors?
Discussions will begin with financial creditors to discuss various options, including the possible consensual settlement of outstanding liabilities in the short term. The objective is to alleviate the financial pressure on the State accounts, always maintaining access to financing sources to oxygenate the economy in these delicate moments. The time is not easy for any country; maintaining access to financial sources and prioritizing the use of resources for health, food, production is key.
One of the most complex scenarios is sustaining dollarization and strengthening the foreign trade agenda. What priority does the signing of trade agreements have now in the management of the Executive, especially with the United States and the Pacific Alliance? Furthermore, the situation also forces the attraction of foreign investment to be promoted, which requires speeding up bilateral agreements.
Before the coronavirus pandemic occurs in the country – remember – we were already working to place our economy in the circuits of commercial exchange and investment that facilitate the arrival of more productive capital and strengthen foreign trade.
There are some people who say that the world is going to change. They are wrong, the world has already changed and radically. This humanitarian crisis is of such a level of disruption that we must all reinvent ourselves, in our way of acting, producing and in our way of thinking. We must free our source of creativity to help the poorest, to give them an opportunity, to integrate them into productive activity. We must accept many ideas that we possibly did not agree with and discard others that we believed in.
That is why the trade agenda must continue in favor of our exports and employment, but above all we must focus on making the consumption of ours a priority. I call on everyone to consume what is produced in our country with Ecuadorian hands. We must focus on the entrepreneurs who live from day to day.
Part of the future is that the world, today more than ever, needs to stock up on food, so we cannot lose sight of that opportunity, which in economic terms is sorely needed. Something very important: the majority of Ecuador’s exports are agribusiness, food (fresh and processed) and the trade agenda with the Pacific Alliance and the United States points in that direction. These two markets represent almost 40% of our non-oil exports.
As for investment, there is a global economic environment of great uncertainty now, but we will be skilled enough to push in those sectors where, once the emergency is over, investment picks up again. The food sector, the energy sector, teleworking, telemedicine, electronic commerce. Food delivery platforms will expand to product exchange platforms not only between companies and consumers but also between companies.
In the short term we must begin to oxygenate the economy. We have to do it with enough prudence to prevent the health crisis from deepening, but with the due intelligence to avoid harsh side effects on poverty. Therefore, we have alleviated the payments of taxes, credits, electricity, water, etc. In these cases, we must prevent an illiquidity problem from becoming an insolvency problem.
Politics
In periods of tragedy, such as the earthquake or now COVID-19, there is a kind of political truce. How to take advantage of this situation to unite the country? Some political leaders believe that it is time for a national agreement and to give up political positions. What are you willing to give up to achieve this great national agreement?
The current moment is one of unity and solidarity, there is no room for political disagreements. We face something never known; We are before an invisible enemy that threatens the lives of our compatriots and that does not give an option for escape because the same thing happens in the entire world. We all stay on this earth, nobody can leave and it is everyone’s obligation and responsibility to contribute to the solution. Either we go out together or we will regret the rest of our lives.
It is not a matter of erasing ideologies and ideas; it is about prioritizing the common interest before a threat to the life of our people. The life of our people is threatened!
I have given sufficient evidence that I am a man of dialogue, I am a person with outstretched hands and fraternal greeting. We will join efforts and talents to move the country forward. I appreciate the calls for unity and solidarity that make the country its priority, we will find ourselves in that interest. I collect and bring out the best of all the proposals I have heard. In a few days I will go to the country.
The National Electoral Council (CNE) proposes to postpone the general elections in 2021 due to the pandemic that has altered the schedules, which would lead to the move of the delivery date of its mandate. Are you prepared and ready for that eventuality?
Elections are part of the democratic exercise of Ecuador. That is not disputed. However, until just a month ago, the country was very different from the one we have today. Such a harsh and extraordinary change in just four weeks places us all – rulers and governed – before a scenario where few things seem to be written on stone. However, the CNE could analyze other options to respect the scheduled date: modify deadlines, for example. Clear provisions will also have to be made to avoid crowds and crowds in campaigning or voting, the virus will still be here for months, we will have to change many habits.
COVID-19
Do the figures presented in official reports include those infected and deceased who have not been treated in the Public Health System? Is there an established procedure to collect this information?
Official figures also include those infected who have not been treated in the Public Health System. The Complementary Network is linked to the notification system. Even private laboratories that carry out tests report to the surveillance system, through the computer system and according to the guidelines established in the epidemiological surveillance system.
Cremation is complicated in the country, there are cities that do not have a crematorium and towns that do not have a morgue. Has the situation been evaluated and solutions to this problem proposed?
The Ministry of Public Health established corpse protocols, at the hospital and out-of-hospital levels, to attend to the health emergency. Indeed, the protocol contemplates this situation. So far, members of Legal Medicine, Police and members of the health system have been trained to handle corpses, they also have all the necessary supplies to carry out the work. With the protocols that have been issued, the different managers have determined how to act. Funeral homes and insurances must do their part, regarding natural deaths. (I)
Official figures also include those infected who have not been treated in the Public Health System. The Complementary Network is linked to the notification system. Even private laboratories that carry out tests report to the surveillance system … ”.
There will also have to be clear provisions to avoid crowds and crowds in the campaign or in the voting, the virus will still be here for months, we will have to change many habits ”.
This humanitarian crisis is of such a level of disruption that we must all reinvent ourselves (…). We have to accept many ideas that we could not possibly agree with and discard others that we believed in. ”
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