The Banking Dialogue Table was the first to have an agreement and a signed protocol. But now the Confederation of Indigenous Nationalities of Ecuador (Conaie) considers it not enough: “The agreements on public, private and cooperative banking are an important step forward, but it is not enough. We will continue to work to ensure that private banks do their part to lift thousands of Ecuadorian families out of the credit crunch.”
Although its President Leonidas Iza admits that this table is already closed, he assures that there are open questions and asks for a new appeal to the representatives of the banks and cooperatives.
Against this background, the Association of Private Banks of Ecuador (Asobanca) points out that space should be given to the mechanism already agreed, in order to highlight its benefits and how it works.
His Deputy Executive President Marco Rodríguez pointed out that financial relief has worked before (in a pandemic) and will work again,” recalling that in the dialogue process it was established that the best way to support people is to Each person’s needs to be taken into account on a case-by-case basis, each needs their own arrangement formula. Therefore, the Financial Council has set the parameters so that natural persons who have microcredit, productive and educational SMEs, and whose debts are in default between January 1, 2020 and June 30, 2022, beneficiaries are institutions and make yours Case.
This process was used in the pandemic and then $10 billion was financially relieved, equal to the budget for defense, education, health and housing combined. The beneficiaries were 2.1 million people and today 340,000 people continue to benefit from the financial relief, he said.
“What do we say to the people who are now demanding a re-analysis of the process? Let the mechanism work as it did then and in a short time we will see that the people who fall under these definitions given by the Financial Board and not by banks access these facilitations and we will see in the In a short time people will reactivate.”
#ATTENTION
The agreements made on public, private and
Cooperatives are an important step forward, but IT IS NOT ENOUGH. We will continue to work on that Private Banking
Do your part to lift thousands of Ecuadorian families out of the credit crunch. pic.twitter.com/oWlAVcq83A— CONAIE (@CONAIE_Ecuador) July 26, 2022
In addition, there will be evaluation tables later, where the banks will talk to the supervisory and control authorities again and the state will talk to the indigenous nationalities again.
According to the decision of the Financial Policy and Regulation Board, the restructuring and refinancing processes will have the same dynamics as in the pandemic: they will be individually assessed and analyzed on a case-by-case basis, with the aim of adapting to the particular situation of each client in need of support .
For Conaie, one of the outstanding problems is the loan to palm farmers with 5 to 50 hectares that would go bankrupt, amounting to US$250,000.
Iván Andrade, CEO of the National Financial Corporation and BanEcuador, also referred to the agreements reached in the dialogue tables between the government and the indigenous leadership regarding public banking. And he believes “that this work is never enough, it is an issue that must continue and it is not because the indigenous peoples and nationalities are asking for it”, because they have tackled the issues out of conviction and as Opportunity loans executed (at 1%).
He pointed out that the law defines the capacity or ability to provide forgiveness of up to $10,000, but pointed out that the first big step is to define this through Decree 546, so that the Forgiveness up to $3,000 and restructuring of securities loans between $3,000 and $10,000.
Andrade pointed out that this should improve the situation of public bank borrowers.
The reorganization will provide for three years of non-payment of principal or interest and the overdue interest will begin to be paid in years 8, 9 and 10; and you get access to new credits because your creditworthiness compartment A1 is restored.
“By not losing, he gains this ability and can thereby get a new loan,” pointed out Andrade, pointing out that in BanEcuador they have 343,000 debtors, of which 27,000 are in the category up to $3,000; and 50,000 debtors have amounts between $3,000 and $10,000. (yo)