The IMF moves forward with its austerity and deregulation agenda for Ecuador. The next commitment for the South American country is so-called “Central Bank independence,” which is will preventing its government from allocating resources to public institutions during this unprecedented economic and health crisis.

 

In this sense, the IMF ratified that Ecuador’s government must revive the reforms to the Monetary and Financial Code that were rejected by the National Assembly in November 2019 in the context of massive popular mobilizations that opposed the government’s anti-popular measures and the economic deregulation prescribed by the IMF. The National Assembly judged these reforms, including the independence of the Central Bank, as unconstitutional and dangerous for the sustainability of Ecuador’s dollarized economic regime. Despite this, the new credit agreement signed in September 2020 between the Washington-based multilateral organization and the government of President Lenín Moreno insists on the reforms.

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