Ecuador’s public debt exceeded the legal limit in 2017, according to the Comptroller’s Office

The Office of the Comptroller General of the State established that, during the Lenín Moreno government, Ecuador carried out credit operations that exceeded the indebtedness limit of 40% of the Gross Domestic Product (GDP) established in the Constitution.

The agency would have carried out an audit of the public debt operations carried out between January 2014 and September 2020, in this report it was detected that in October 2017 the Ministry of Economy and Finance signed a credit agreement for USD 500 million with Goldam Sachs International, despite the fact that on that date the percentage of liabilities exceeded 48%.

In June 2017, Ecuador’s public debt reached USD 48,647,334 819.98; exactly 48.41% of GDP.

In this sense, the Executive, led at that time by Moreno, made credit commitments without “requesting the approval of the National Assembly, nor preparing the Plan for Strengthening and Fiscal Sustainability, provided in article 124 of the Organic Code of Planning and Public Finance. (Coplafip)”.

Currently, Ecuador’s Public Debt exceeds 61.52% and reaches USD 63,091.40 million, according to the Ministry of Finance.

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