Applauding the IMF while Ecuador faces industrial blackouts

The administration of President Noboa welcomed a 180-point drop in the country risk indicator after the approval of the second review of the credit program with the IMF, worth USD 4 billion, which included raising the value-added tax (IVA) to 15% and cuts to operating spending.

Yet Ecuadorian industry is losing more than USD 600 million a month because of electricity rationing caused by the lack of state investment in the maintenance of the hydroelectric plants.

Balanced accounts on paper, achieved by cutting essential services, are destroying the country's real productive base.

Maintaining fiscal discipline by reducing capital spending on the national power grid paralyzes factories and destroys formal jobs in the main cities.