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Ecuador provides an example of a government which officially decided to investigate the process of indebtedness so as to identify illegitimate debt and suspend its repayment. The fact that the government suspended payment of a large part of its commercial debt, only to buy it back at a lower price, showed that it meant more than mere denunciation. Indeed it undertook the unilateral restructuration of part of its external debt and thus won a moral victory over its private creditors, who were mainly banks. In 2007 at the beginning of Rafael Correa’s presidency, the government of Ecuador clashed with the World Bank. In this series of three articles, we first analyse the loans granted by the World Bank and the IMF. In the second part, we recount the government’s actions mainly regarding the debt audit and the resulting suspension of payment. Finally in part 3, we discuss the limitations of Rafael Correa’s government’s actions, and briefly evoke the policies of his successor Lenin Moreno.
From 1983, the IMF imposed its programme on Ecuador, aiming for macro-economic stability in the short term so that the country could once again be in a position to repay its debts. The programme took the form of the signature of a “letter of intent” between the indebted country and the IMF, demanding anti-social policies such as fiscal / budget austerity, devaluation of the currency, price liberalization, etc. Between 1983 and 2003, Ecuador signed 13 letters of intent. Successive governments of Ecuador, until the election of Rafael Correa in November 2006, did not hesitate to sign these documents, despite the mainly negative impact that the measures they prescribed had on the majority of the population. Since 2017, President Lenin Moreno has returned to the fold of the IMF and the World Bank, triggering massive popular mobilization, especially in October 2019.
www.cadtm.org
This is an interesting perspective on Ecuador qne IMF. I don't like the IMF. If they are involved, it's a shitfest
From 1983, the IMF imposed its programme on Ecuador, aiming for macro-economic stability in the short term so that the country could once again be in a position to repay its debts. The programme took the form of the signature of a “letter of intent” between the indebted country and the IMF, demanding anti-social policies such as fiscal / budget austerity, devaluation of the currency, price liberalization, etc. Between 1983 and 2003, Ecuador signed 13 letters of intent. Successive governments of Ecuador, until the election of Rafael Correa in November 2006, did not hesitate to sign these documents, despite the mainly negative impact that the measures they prescribed had on the majority of the population. Since 2017, President Lenin Moreno has returned to the fold of the IMF and the World Bank, triggering massive popular mobilization, especially in October 2019.
Ecuador's poisoned loans from the World Bank and the IMF – CADTM
Ecuador provides an example of a government which officially decided to investigate the process of indebtedness so as to identify illegitimate debt and suspend its repayment. The fact that the…
This is an interesting perspective on Ecuador qne IMF. I don't like the IMF. If they are involved, it's a shitfest
