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The incalculable damage caused to the country’s economy and the people of Ecuador by public borrowing, omnipresent as a pressure-submission system, and the consequent commitment of public resources to deliver its service, whether or not available, prompted the national government to adopt the first decision and so far unique in Latin America to create an audit to establish the legitimacy, legality and relevance of the loans, negotiations and renegotiations, which also brought responsibilities and shared responsibility of lenders, social impacts, economic and environmental impacts, and, above all, allowing the accumulation and weight of fundamentals for the country to initiate and sovereign and remedial actions regarding all payments made and future payments as well.
In that context, the Constitutional President of the Republic, Economist Rafael Correa Delgado, ordered the creation of the Audit Commission for Integrated Public Credit (CAIC), with the involvement of domestic and foreign social organizations, universities and research institutions and development.
After a year of hard preparatory work, which involved difficulties in gathering information especially given the period of thirty years due to cover the audit, the CAIC herewith presents an Executive Summary of the final report prepared after thorough examination by its members and teams of professionals formed for the purpose.
The substantive part of the audit lies in the results that contain evidence in each section of the Ecuadorian debt, structured as follows:
- The commercial debt, which analyzes the entirety of borrowing by public entities of Ecuador with international private banking, in its evolution, since 1976.
- The multilateral debt granted by international financial organizations, which in this work relates to credits selected as priorities and assumptions of illegitimacy.
- Bilateral debt, which includes loans from governments or government agencies from nine countries. They all have been audited, especially those pertaining to the greater credits: Spain and Brazil, and those that make up the Paris Club.
- Loans granted to the Commission on Guayas River Basin Development (CEDEGE) for the implementation of Multipurpose Project Jaime Roldós Aguilera, corresponding to bilateral and multilateral groups.
- The domestic debt, section which includes numerous State Bond issues, State Stabilization Bonds and AGD Bonds.
- The Commission’s report is a first result of what must be an ongoing process –the auditand suggests that both government authorities and society at large be aware of the truth about the way it has conducted the public debt which undoubtedly has resulted in the brake imposed on the development and the disillusionment of Ecuadorians, whose reality is far from the basic conditions for good life.
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CONTENTS |
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PRESENTATION
ACRONYMS
I. GENERAL CONSIDERATIONS
The charge of the contracting debts and the audit
The presidential decision, the executive decree enacting and the CAIC creation
II. RESULTS OF THE AUDIT BY PIECES OF THE DEBT
SECTION I:
COMMERCIAL DEBT
SECTION II:
JURIDICAL ANALYSIS OF THE COMMERCIAL DEBT
SECTION III:
MULTILATERAL DEBT
Credits for debt reduction (Plan Brady) and modernization / privatization
Credits that financed sectorial programs
Credits utilized in the multipurpose project
“JAIME ROLDÓS AGUILERA” implemented by CEDEGE
SECTION IV :
BILATERAL DEBT
PARIS CLUB
SECTION V:
INTERNAL PUBLIC DEBT
III. CONCLUSIONS
APPENDIX 1
EXECUTIVE DECREE No. 472)
APPENDIX 2
DECLARATION
APPENDIX 3
AN AUDIT OF SECTORAL LOANS: OBJECTIVES AND RESULTS
APPENDIX 4:
NAMES OF PERSONNEL AND INSTITUTIONS WHICH COLLABORATE IN THE COMPREHENSIVE AUDITING OF THE ECUADORIAN DEBT
Source: CAIC Ecuador - Comisión para la auditoría integral del crédito público
