Ecuador regains its composure after protests against the elimination of subsidies

After 12 days of demonstrations, Ecuador slowly returns to calm. "These days, they should teach us how to value peace, stability, security, "said President Lenin Moreno in a broadcast on television and recorded in Guayaquil, where he moved to government headquarters last week due to strong protests in Quito.

Although two weeks ago, Moreno declared that he would not give in to the pressure on Monday, he backed down and ended the decree had eliminated subsidies to fuels, as agreed with the International Monetary Fund.

Moreno signed Monday Decree 894, which "left no effect" the precedent, signed on October 1. In addition, he stated that they would promote a new media that would allow diesel subsidy policy and gasoline Thus, the fuels will be the same as those established before the entry into force of Decree 883.

For 13 days, Quito was the scene of violent demonstrations that ended Sunday with a engagement between Moreno and the indigenous movement He led the demonstrations. The negotiation took place face to face, with the mediation of the UN and the Catholic Church.

The executive has accepted the condition of the Confederation of Nationalities (Conaie) to demobilize thousands of its members: repeal the presidential decree agreed with the IMF.

From Venezuela, the reaction was swift. "I congratulate the people of Ecuador for their historic victory against the IMF," the Venezuelan president said on Twitter. Nicolás Maduro, indicated by Moreno to activate with his predecessor and exalted Rafael Correa a destabilization plan. Both accused made fun of these accusations.

Commitments to the IMF

Indigenous peoples have returned to their communities in the midst of curfew and militarization which reigns since Saturday for the capital. The elimination of subsidies lasted nearly two weeks and agreed with the IMF to provide loans of $ 4,200 million.

With subsidies, "the savings will not be as large as expected" to avoid a deficit of about $ 5.6 billion in 2019, he said AFP economic analyst Alberto Acosta Burneo.

"Ecuador must respect the commitments made with the IMF, because nobody will lend it to him if he wants to continue spending and wants to continue living with his debts", a strategy applied since 2014, did he adds.

Events in the Amazon have resulted in a decline in crude oil production, which was recovering gradually, and the suspension of pumping through the state pipeline, with the ability to evacuate 68% of the 531,000 barrels per day extracted in the Pacific.