“With the increase in the Value Added Tax (VAT), the reduction in exports (due to the loss of the Russian market), the economic adjustment, and the tax exemptions, among other issues, the country is heading straight towards recession, unemployment and social conflict,” specialist Pablo Dávalos said.

The comment comes after the National Assembly did not have enough votes to reverse the veto of the President, who decided to increase the VAT by 13 percent permanently with the possibility of raising it to 15 at his discretion.

According to Dávalos, Noboa is worse than former president Guillermo Lasso, since not only did he opt to raise the VAT alleging the need for more income to finance operations against organized crime, but he also led to the suspension of exports to Russia.

Russia canceled the purchase permits for bananas and carnations after the Ecuadorian Government announced the shipment of allegedly unused Russian-made weapons to the United States in exchange for new equipment after Kevin Sullivan, Undersecretary of Hemisphere Affairs Western Department of the US State Department, recognized on February 8th that the delivery is part of “an arrangement” to transfer weapons to Ukraine.

“There is no market in the world that can supply what is sent to Russia, which is around 1.4 million boxes a week,” Richard Salazar, executive director of the Banana Exporters Association, said recently.

Added to this is that previously the Executive led by Noboa promoted regulations to promote employment exempting large companies from paying tax interest, with the alleged objective of stimulating the hiring of young personnel.

Ecuador also faces a fiscal deficit of about five billion dollars and, despite already having a million-dollar debt with institutions such as the International Monetary Fund, is seeking new credits from international organizations.

jrr/llp/oda/avr