One problem solved, on to the next

ECUADOR - In Brief 22 Dec 2020 by Magdalena Barreiro
As anticipated, the Board of Directors of the IMF approved the second disbursement for Ecuador for $2.0b. This disbursement will be used mainly to catch up with arrears with local governments, public servants, and private sector suppliers, as announced by Minister Mauricio Pozo.On the other hand, the political environment is quite complicated as the conflict between the Electoral Council and the Electoral Court over the candidacy of Alvaro Noboa continues and has no signs of an easy or fast solution. Two of the Electoral Council members have submitted a consult to the Constitutional Court - a decision that might take at least 45 days. If so, the date for the first round must be moved. Even though the dates for the first and second rounds can be moved, the dates for the legislators and the elected president to take office cannot be changed, according to the constitution. These dates are May the 14th and May the 24th, respectively. The suspicion of political interests behind this conflict is strong as Noboa is a threat both for Arauz and for Lasso. While three of the members of the Council might be aligned with Arauz, the other two are closer to the Social Christian Party that is allied with CREO from Guillermo Lasso.This impasse reveals the fragility of the Ecuadorian democracy and has already taken a toll on the recently initiated trade agreement with the United States as legislators have sent their message loud and clear on their expectations for free and transparent elections before proceeding with negotiations.

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