Source : https://dofollownet.com
The Ecuadorian president, Rafael Correa, is expected to win the general elections on Sunday with a large advantage, which will ensure his re-election without a runoff. The president would get 50% of the votes, according to a survey released yesterday.
Correa needs at least 40% of the vote to win the presidency in the first round. Approximately 10.5 million Ecuadorians participate in elections, which will elect the president and vice president of the republic, 221 mayors and municipal councilors and 1581 members of the National Assembly.
First elected in 2006, Correa has achieved some political stability after his three predecessors were ousted by street protests, encouraged by the fragile economy of Ecuador.
In September last year, Ecuador approved a new constitution in a referendum, which allows immediate reelection and strengthens the social measures on which the president has consolidated his popularity. Repairing ties with creditors is vital to maintaining this support.
Before the elections, the Government of Ecuador also announced having obtained a moratorium allowing the country to repurchased its debt at 30% of its nominal value, a slightly better value than expected by the market.
The proposal considered by the government of Correa with French and British advisers, would give creditors about 30 cents for every dollar of debt.
Some analysts warn that if the acquisition fails, Correa is risking to plunge his country into a financial crisis that will hurt his popularity. Although the Ecuadorian economy grew 6.5% in 2008, Ecuador has not been spared by the effects of global crisis.
The Ecuadorian president has acknowledged that his government needs about 1,500 millions to cover the fiscal deficit, other analysts predict that number could exceed 3,000 million. Ecuador's debt, about 10,000 millions, equivalent to 19.7% of its gross domestic product (GDP).Read »