Ecuador refuses to forgive $10,000 debts to peasant communities because it would “endanger state-owned banks”.

The Ecuadorian government refused to write off debts up to $10,000, as required peasant organizations who participated in demonstrations last July, after the interior ministry said it was not viable because it would “endanger Banecuador, the country’s state-owned bank.”

From the executive branch they claim that Banekador it has already applied automatic debt relief up to $3,000 and that there is currently no financial opportunity to increase this mechanism, as $60 million would have been invested in this measure so far.

Banekador argued that a new forgiveness would jeopardize the resource management of more than two million customers, as well as 180,000 beneficiaries.

However, the government of Guillermo Lasso recalled that debtors have at their disposal benefits in state-owned banks, including debt restructuring and restructuring, as well as “loans on favorable terms,” ​​the aforementioned newspaper reported.

The head of the economics department specified that the bank had a loss of $83 million (80 million euros) until September 2022, and that if the forgiveness is agreed, the public financial institution will stop charging $190 million from about 25,000 customers.

“We must be careful and consistent in orderly management. The assets of an institution that today helps entrepreneurs move forward cannot be allowed to be at risk. Connivance dooms entrepreneurs to the fact that no one wants them to lend again, ”added Pablo Arosemena. .

Lasso: Drug traffic funded the strike

Ecuadorian President Guillermo Lasso assured that drug trafficking funded nearly $15 million in a mobilization that was to take place in the country over 18 days in July and which was convened by indigenous organizations.

Lasso argued that there would have been an alliance of indigenous organizations and correísmo while financing drug trafficking in order to “organize a protest to overthrow” his government.

“This is an alliance with the correísmo and there is a third actor in this alliance who is putting money into protests that will cost about $15 million over 18 days. This actor is involved in the drug trade in Ecuador,” Guillermo Lasso accused former President Rafael Correa at length of wanting to disrupt public order from his exile in Belgium.

(According to Europa Press)