Do we Expats in Ecuador need to be concerned about our bank deposits? - SARS 23 MAY 20/20

May 11, 2020, INSIGHT: 'Ecuador—Tax, Labor and Economic Measures to Respond to the Pandemic- ☣️ "The Ecuador government has introduced several tax and economic measures in response to the Covid-19 pandemic. With an Ecuadorean economy which relies heavily on the export market, Diego Andrés Almeida of Almeida Guzmán & Asociados discusses how effective the new measures will be, and what the future may hold.

The Future ⚖️

Alongside Citibank and Lazard Freres, the Ecuadorian Ministry of Finance and Economy, led by Minister Richard Martinez, Vice Minister Fabian Carrillo and Vice Minister Esteban Ferro, is working to renegotiate the national debt.

💰

On May 4, 2020, Ecuador started a period of “social distancing.” ☣️ New labor norms will be put in place in order to mitigate the risk of contagion in workplaces. As one of the three officially dollarized economies in the hemisphere, Ecuador will face a tough challenge as the economy will rely heavily on the export market to keep dollars flowing into the local economy. The Latin American Development Bank has committed to disburse an extra $300 million within the first two weeks of May 2020.

With the extra funds and the passing of new stimulus packages, it is expected that Ecuadorian exporters will be the driving force to rebuild the economy under a “new normal” that will include a change in the composition of GDP. Remittances sent by Ecuadorians working abroad will also continue to be an important force for the economy; however, predictions regarding the amounts are hard to make as the main countries of origin, the U.S., Spain, and Italy, are still suffering the effects of the pandemic.

With almost one year until the next presidential election, Ecuadorian politicians are scrambling to make new alliances........" - 💵 

Planning Points-

Companies doing business in Ecuador will have to work on consensual agreements with their workers to mitigate future risks, at least until a new set of laws is passed, but they should be careful not to impinge upon the constitutional rights of workers, as doing so could only deepen social conflict.

Due to the cash shortage and the impossibility of printing currency because of dollarization, government, banks and companies will have to perform careful planning in order to mitigate risks.

International investors could take advantage of tax benefits: exemptions from income tax, reductions of import duties, application of extraordinary deductions to determine taxable base, among others.

Finally, it will be important to monitor the social unrest that might arise as a result of the passing of new laws and the potential eliminations of the last fuel subsidies in place.

Diego Andrés Almeida is Senior Consultant with Almeida Guzmán & Asociados.

The author may be contacted at: daa@almeidaguzman.com

This column does not necessarily reflect the opinion of The Bureau of National Affairs, Inc. or its owners.

https://news.bloombergtax.com/daily-tax-report-international/insight-ecuador-tax-labor-and-economic-measures-to-respond-to-the-pandemic

'JJinEc' <This (JMHO) does not necessarily reflect the opinion of The FB Group 'Expats Leaving Ecuador' or its owners. - I don't like to give good people bad news, but, since you asked. ...and bare in mind this is just (JMHO) there are other way more qualified Dr's, Lawyers, PHD's, Ecua Natives and dual citizens in this group that have been here for decades who have forgot more about EC than I will ever hope to know. ..so as i say (JMHO) >

>I have a close expat pal that had in excess of $50k in the cuenca coop that went under 5-6 yrs ago. The coop paid the $500 to $5k depositors off first, and He is still waiting and receiving quarterly payments to be made whole to this day in 20/20. 🎰 💸

We will know the bank holidays and economic collapse is close When we see wealthy Ecuas begin to withdraw large amounts and turn around and buy up property's and realty at distressed sale bargain barn prices at a fraction of pre-OCT 2019 Riots prices from property owners that are under duress. 👩‍🏫 > so, i will keep my meager realty listings active for when the time comes Ecuador Real Estate: http://ecuadorrealestate.org

...this gives wealthy Ecuas as a way out to protect their ass-sets from the greedy bankers and GOV grubby little hands. Many wealthy Ecuas keep their big money off shore in Panama, Miami, Swiss, Belgium, etc etc...

>EC has a tuff time to manage it's affairs in good peak prosperity times of $150 p/b oil, so now in a full blown titts up crisis mode, they will still continue to have trouble to manage their own affairs, 🛢🧯⛽️

...due to the ever evolving perfect storm / that is a current multifaceted group of Ecua-Factors (not just #Covid19) but 4 - 5 - 6 other major catastrophic failure events all coming together in a short time frame 20/20 up until the EC Pres. Sell-lection in FEB 2021> so good luck, God Bless, GodSpeedo, God Save the King at the Presidential Palace next year,> 🤴

<Hope and Pray for the best, but Plan and Prep for the worst, and so forth and so on cause we gonna certainly need it, as an old wise owl lawyer used to say: 🦉 'Govern yourselves accordingly, lol> ⚖️ 🗿> 

 Indian Chief Dan George: Lone Watie: -- "If I figure this right? Get Ready Little Lady, Hell is Coming to Breakfast!" -- The Outlaw Josey Wales (1976) <In regards to ECUADOR SocioEconomic Crunch time frame crisis - AS IN NOW!!!> https://youtu.be/e63Tk-5UKPc  

<......so as i say (JMHO) I am just a humble servant shot out truck driver with half his brains knocked out, so I am keeping this typed version mild, Blind Man artist Ray Charles could see this coming from miles away. I dont wanna be kicked off of facecrack / farcebook, it is so much fun to pass the time while #ShelterInPlace, if you want hear how i really feel about it call me Bat Phone: WhatsApp: 593-98-828-8953,> 

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