Board of Directors of the Development Bank of Ecuador-BDE approves request of the Ministry of Economy and Finance for financial relief to GADs

The serious economic situation at the national level, caused by the health crisis as a result of the global pandemic, added to the drastic fall in the price of oil in international markets, has generated a social impact that has affected all three levels of Government .

This situation has compromised the availability of income to the General State budget and with high income of the Decentralized Autonomous Governments, since the transfers that correspond to them by law have been reduced, with which the institutional planning of the GADs has been affected in the reduction budget, to which they have had to submit, which compromises the coverage of programmed expenses.

The Ministry of Economy and Finance, sensitive to this reality, with Official Letter No. MEF-VGF-2020-1121-O, of October 24, 2020, requested the Development Bank of Ecuador BP, as the main lender of the GADs, ” (…) Generate mechanisms, simple and abbreviated procedures and other actions that are required so that, within the framework of the law, novation, refinancing and restructuring of credit operations maintained by the Decentralized Autonomous Governments are implemented, aimed at generating relief on the financial burdens of the GAD ”.

The BDE directory, taking into account Abg. Juan Pablo Cruz, as Principal member, representing the GADs, with a favorable vote, adding to the other members: the representatives of the GADM and Parish GAD, as well as the Ministry of Finance, Minister of Government, President of the Autonomous Decentralized Parish Rural Government de Quiroga, Mayor of the Autonomous Decentralized Municipal Government of the Troncal and General Manager of the BDE, aware of this reality that has generated concern and uneasiness in the finances of the three levels of Governments, in an extraordinary session dated October 31, 2020, 21DIR .BDE.BP-2020, unanimously approved: “The novations, refinancing and credit restructures of the obligations that the Decentralized Autonomous Governments of Ecuador maintain with the Development Bank of Ecuador BP, in favor of the GADs that request it, by up to 60 additional months to the term that is about to expire; in order to help face the financial crisis that Ecuador is going through, (…) ”.

With this management a milestone has been marked of the provenance in the financial management of the BDE lenders, of great support, thanks to the Abg. Juan Pablo Cruz from the GADP of Chimborazo.