LatinNews Daily - 28 November 2023

* Ecuador’s economy and finance minister, Juan Carlos Vega, has warned that the new government led by President Daniel Noboa has inherited a “grave economic situation”. Vega said that there is just US$184m in the treasury’s current account, while the country is behind on debt payments totalling US$2.87bn. He noted that Ecuador finds itself in this precarious financial situation just as it faces an urgent need for spending to address mounting insecurity, improve healthcare, and mitigate the impact of the El Niño climate phenomenon. This, he said, means that the country’s fiscal deficit is expected to exceed US$5bn by the end of 2023, equating to 5% of GDP, while the new government has also inherited internal and external debt totalling US$63bn. Vega also noted that Ecuador’s country risk now approaches 2,000 points, which he said “excludes us from normal debt markets and further complicates efforts to attract investment”. Speaking alongside Vega, President Noboa said that his first action to begin steadying the ship would be the submission of an urgent economic bill to boost employment, which he has previously said will deliver tax incentives for employers.