[stop-imf] Ecuador to conduct 'sovereign' policies not to become an IMF colony - minister

[robert weissman]

AFX News Limited
Ecuador to conduct 'sovereign' policies not to become an IMF colony -
minister
05.31.2005, 02:48 PM

QUITO (AFX) - Economy minister Rafael Correa said that the new
Ecuadorian administration will conduct 'sovereign' economic policies to
avoid becoming a colony of the IMF.

Correa announced yesterday that Ecuador is ending the surveillance
programme with the IMF which was signed under the Gutierrez government,
ousted in March after days of street protests.

Correa dismissed in a TV interview the muted reaction of the IMF to the
proposed fiscally expansive policies of the government.

When IMF general manager Rodrigo Rato came over to Ecuador in February,
he said that the economic policies of the government were successful
when the unemployment rate reached 12 pct, Correa said.

What Rato said in Ecuador, he would not have dared say in his home
country Spain, Correa added.

He said in an interview that he finds it positive that Rato declines to
comment on his programme.

Ecuador is currently trying to secure a loan of 350 mln usd to meet debt
repayment obligations on an 850 mln usd loan extended by multilateral
institutions.

Correa dismissed fears that the IMF will refuse to provide funds to
Ecuador due to his criticisms.

He said that rumours about the IMF shunning Ecuador are part of a
'psychological war'.

Relations between Ecuador and multilateral lending agencies are very
good, he said.

HSBC analysts said in a note today that Correa's hard rhetoric against
the Fund is hard to read.

'On the one hand, it serves him politically to back up his talks of
populist reform.

'On the other hand, however, it is plainly obvious that Ecuador needs
the financing of the multinationals.'

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