Ecuadorean President Lenin Moreno on Tuesday announced new public spending cuts aimed at saving his government $4 billion as the Andean country faces a new debt crisis worsened by the coronavirus crisis.
The collapse in global oil prices and an economic slowdown as Moreno’s government scrambles to contain one of Latin America’s worst COVID-19 outbreaks have dented state revenues by $8 billion.
Ecuador’s total public debt was $58 billion as of March, equivalent to almost 53% of gross domestic product.
Moreno, in a TV broadcast, also unveiled a new system to limit gasoline price changes. The system will allow prices to fluctuate by 5% from the oil price and will be revised each month.
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