Social organizations presented protective actions to prevent the “privatization” of the ECB

Social organizations presented several protection actions before the Constitutional Court to prevent the privatization of the Central Bank of Ecuador, which, they reported, is part of the agenda imposed by the International Monetary Fund (IMF) to Ecuador.

Popular Legal Action, Center for Economic and Social Rights – CDES and the Dollarization Observatory will present these actions in several provinces of the country, simultaneously.

They criticize that part of the conditions of the new Agreement with the IMF, consists of the reduction of the size of the State, the dismissal of public workers, the increase of three points of VAT, and a reform to the organic and financial code.

Regarding this last condition, the plaintiffs claim that it would seek the supposed “independence” of the Central Bank, but they emphasize that, in reality, it would imply handing it over to the private financial sector, preventing its use to contribute to overcoming the health and economic crisis.

They explain that this independence of the Central Bank would violate Article 303 of the Constitution, which establishes that: “the formulation of monetary, credit, exchange and financial policies is the exclusive power of the Executive Branch and will be implemented through the Central Bank. The law will regulate the circulation of the currency with liberatory power in the Ecuadorian territory. “

In addition, they reject that the Government would seek to appoint a new ECB board of directors, made up of representatives of the private banking sector, resuming the operating scheme of the 1990s that ended in one of the worst crises in our recent history.

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