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Ecuador: State Oil Company Resumes Exports

1 MIN READOct 21, 2019 | 14:03 GMT

What Happened: Ecuador's state-run oil company Petroecuador has resumed crude exports after weekslong protests forced the company to halt shipments, Reuters reported Oct. 20. Meanwhile, Ecuadorian President Lenin Moreno has submitted a tax reform proposal in an effort to boost state revenue after the protests prompted his government to reverse plans to end fuel subsidies.

Why It Matters: Moreno is attempting to appeal to restive indigenous, labor and student groups while still meeting obligations as set forth in a loan package by the International Monetary Fund. While the president is still seeking to replace lost revenues after withdrawing the fuel subsidy cut, he has promised measures to address IMF concerns about the government's budget deficit. However, the expected returns from the new tax structure will likely fall well short of the gains that eliminating the fuel subsidy would have provided.

Background: Moreno bowed to demonstrators' demands last week and agreed to restore the fuel subsidy after nearly two weeks of nationwide anti-austerity protests.

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