A Second Denial to Debate the Bill in Favor of Dollarization

ECUADOR - In Brief 02 Mar 2021 by Magdalena Barreiro
By the end of last year considering general comments from legislators on the subject bill, we had hopes for its approval. However, so far, the Administrative Council from the Assembly has denied twice the possibility to debate the bill in the plenary session. Albeit Ministry of Finance Mauricio Pozo has declared the government will insist how many times as necessary, we do not foresee a positive outcome until the new Assembly takes office in May.Votes against came one from Correistas, as expected, but two votes were from members of Alianza Pais --including that from the President of the Assembly, Cesar Litardo. President Lenin Moreno left Alianza Pais today, and the official party initiated a disciplinary process against him alleging he did not follow the party's government program. In these circumstances, expecting an acceptance and further approval of the law would be too optimistic.Albeit it is too soon to assure the ending of the program with the IMF, it is quite possible that the $400m disbursement expected in April will not come in time. Such a delay will give a hard start either to Guillermo Lasso, who has a weak bloc in the new Assembly, or to Andres Arauz who has a majority of 50 votes, which is not enough to approve or deny such a bill. What will happen with this and other projects of law, will largely depend on the votes of Izquierda Democratica and Pachakutik, who together might reach close to 30 seats and are now in conversations to form a legislative coalition.

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