The talking table around the banks was the first to get an agreement and a signed minute. But now the Union of Indigenous Nationalities of Ecuador (CONE) considers that not enough: “The agreements reached on public, private and cooperative banking are important advances, but they are not enough. We will continue to work until private banks do their part to get thousands of Ecuadorean families out of the credit crunch.”
Although its president, Leonidas Iza, acknowledges that this table is already closed, he confirms that there are outstanding issues and requests a new invitation to representatives of banks and cooperatives.
In light of this, the Association of Private Banks in Ecuador (Asobanca) points out that space is given to the already agreed mechanism so that the benefits are noted and how it works.
Executive Vice President, Marco Rodriguez, noted that financial relief has worked before (in the event of a pandemic) and will work again” and noted that what was found in the dialogue process was that the best way to support people was to consider the needs of each person on the On a case-by-case basis, each one needs their own arrangement formula.Thus, the Financial Council set the standards so that natural persons with small, productive, educational, small and overdue credit institutions whose debts between January 1, 2020 and June 30, 2022 are the beneficiaries of the institutions and make your case.
This process was applied in the pandemic and then subjected to $10 billion in financial relief, which is the equivalent of the defense, education, health and housing budgets combined. He pointed out that the number of beneficiaries reached 2.1 million people, and today 340,000 people are still benefiting from financial aid.
“What do we say to the people who are now calling for a re-analysis of the process? Let the mechanism work as it was at the time, and we will see in a short time that people who fall into these tariffs introduced by the Financial Council, and not by the banks, have access to these exemptions and we will see that in a short time, people will be reactivated.”
Agreements reached on the public and private sectors and
Cooperatives are an important step forward, but they are not enough. We will continue to work so that private banking
Do your part to get thousands of Ecuadorean families out of the credit crunch. pic.twitter.com/oWlAVcq83A
– CONAIE (CONAIE_Ecuador) 26 July 2022
In addition, there will be evaluation tables later, where the banks will talk again with the supervisory and control bodies and the state will talk again with the original nationalities.
In accordance with the decision of the Financial Policy and Regulation Board, the restructuring and refinancing operations will have the same dynamics as in the pandemic: they will be assessed and analyzed in an ad hoc, case-by-case manner, with the aim of adapting to the specific situation of each client requiring support.
For Kunai, one of the issues still outstanding is the credit given to palm growers who own between 5 and 50 hectares, which would bankrupt them, which would be in the amount of $250,000.
Ivan Andrade, Chairman of the Board of Directors of the National Financial Corporation and BanEcuador, also noted the agreements reached at the dialogue tables between the government and local leadership regarding public banking. He believes that “this work is never enough, this is an issue that must continue, not because indigenous peoples and nationalities are asking”, because of their conviction they were taking issues and implementing them as credits of opportunity (by 1%).
He noted that the law limits the ability or possibility of making remissions of up to $10,000, but he noted that the first step was to determine it through Decree No. 546 so that the lapses would reach $3,000 and restructure the stock credit between $3,000. And $10,000.
Andrade pointed out that the goal in this way is to improve the position of public debtor banks.
The restructuring will give three years of no principal or interest payment and the overdue interest payment will start in years 8, 9 and 10; And you’ll be able to access new credits because your A1 credit quality theme is re-established.
And Andrade stressed that “with what he does not lose, he acquires this ability and through it he can obtain new credit,” noting that they have in Bancuador 343,000 debtors, of whom 27 thousand are in a denomination of up to $3,000; And 50,000 debtors have amounts ranging from $3,000 to $10,000. (YO)
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