The agency seeks to develop an adequate debt market that will allow the transfer of financial assets from public banks to private banks.
Ecuador and the World Bank Group establish a cooperation plan for 2019-2023. The main commitments are: to boost private investment and eliminate the Bank of the Ecuadorian Social Security Institute (BIESS).
The World Bacchus has determined that private investment could generate significant benefits if «current market distortions» such as price controls or subsidies are eliminated and if regulatory frameworks are strengthened.
In addition, the WB proposes the gradual elimination of BIESS. Currently, this entity is in charge of administering the country’s pension system through investments in mortgages and state bills.
In other words, the WB says that it is better that the BIESS does not work because this work can be done by private banks. The BIESS manages the savings of 3.4 million members.
The World Bank, in the document, points out the support for a program to develop an adequate debt market that will allow these financial assets to be transferred from public banks to private banks.
The Ecuadorian economy has a rating of CAA1, according to Moody’s, which means a high-risk country, with respect to compliance with obligations.
Source: GBM, Twitter