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Economic Policy

Beyond the preoccupation indicated by Peace and I mine, the Ecuadorian minister of Coordination of the Policy Economic, Pedro Pez, was calm before the situation and in declarations picked up by site Venezuelan 2001 said: we have made several scenes and we think that within the foreseeable thing of the evolution of the international crisis, we are with the sufficient mattresses that they would avoid to arrive at majors. In addition, there are several mechanisms that will allow to confront with more serenity the fluctuations of the market But the collapse of the price of petroleum has not been the unique bad news received by the Ecuadorian economy in the last months. It is that the strong devaluation produced in several of the Latin American currencies represents a blow its trade balance which will be affected by the loss of competitiveness. It is that 36.6% of the Ecuadorian exports have as destiny to the Latin American countries, whereas 46.5% of the Ecuadorian imports come from the countries of Latin America. The fragility of the Ecuadorian economy is reflected in the jump that stuck the risk country, which one is over the 2,950 points and it is the risk level higher country of the region. Bond to remember that in January of 2007, when Rafael Strap assumed like president of Ecuador, the risk country ascended to 827 basic points. It is by this level of the risk country that, according to the data issued by the Central bank of Ecuador, the value of market of the debt of bonds Global is in a third of its nominal value. This strong rise, although it responds partly to a preference of the investors by safer assets, is explained in a greater proportion to the policies and declarations of Rafael Strap, that showed that if it needs money the debt does not pay: In case there is a very serious crisis and fall much the prices of petroleum, first, I insist, we will review the payment to him of external debt said in a radial interview in the city of River basin.