Thursday, December 10, 2009
Ecuador's Central Bank: We Cannot Go On
The President of the Directory of Ecuador's Central Bank resigned with all the higher personnel because they were not willing to go on carrying out the President's orders. The Bank had 800 million dollar reserves safely deposited in a large international bank. The President ordered to repatriate those reserves and channel them as a loan to some govenment companies. In the Ecuadorian context, the order meant to transfer Ecuador's national foreign currency reserves to the Presidential pocket. I was surprised that Ecuadorian functionaries have a red line, but they have one and this is it.