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Ecuador needs more than 1 billion dollars for the war against organized crime

The figure comes amid a situation of violence that forced the president, Daniel Noboa, to declare a state of internal armed conflict against the gangs.

Ecuadorean soldiers patrol outside the premises of Ecuador's TC television channel after unidentified gunmen burst into the state-owned television studio live on air on January 9, 2024, in Guayaquil, Ecuador, a day after Ecuadorean President Daniel Noboa declared a state of emergency following the escape from prison of a dangerous narco boss. - Gunshots rang out on live TV in violence-torn Ecuador as armed men carrying rifles and grenades stormed the studio shortly after gangsters vowed a

(Marcos Pin / AFP).

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Williams Perdomo

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Ecuador needs at least 1.02 billion dollars for its war against organized crime. The figure comes amid a situation of violence that forced the president, Daniel Noboa, to declare a state of internal armed conflict against the gangs.

In that sense, the Minister of Economy and Finance, Juan Carlos Vega, highlighted the importance of the National Assembly approving the organic law bill to confront the internal armed conflict and the social and economic crisis in Ecuador. "The main economic measure that the Government of President Daniel Noboa is taking, is the fight against organized crime, which has high costs and brings additional pressure to the fiscal coffers," Vega said in a statement published by his portfolio.

01/15/2024 ConversatorioIVA 001 by Williams Perdomo on Scribd

VAT increase to combat crime in Ecuador

Likewise, the ministry explained that an increase in VAT from 12% to 15% will provide the State with additional annual income of 1,306 million dollars, resources that will serve to confront insecurity. "It is expected that the Armed Forces alone need USD 1,020 million to sustain the state of internal conflict in the country, which cannot be defined in how long it will last," the ministry highlighted.

Meanwhile, the Secretary of State explained that if measures are not adopted, the country's fiscal situation is unsustainable in the short term, since the fiscal fund is at minimum levels, considering that "for every dollar we have there are 25 dollars in debt." He assured that the deficit is similar to what it was during the pandemic.

This situation has led to a large accumulation of arrears and accounts payable in the public sector, which can affect the liquidity of the economy in general and put dollarization at risk.

The South American country is going through a complex security situation that has worsened after the disappearance of the leader of the feared Los Choneros criminal gang, Adolfo Macías Villamar, alias Fito.

Macías Villamar, the leader of one of the most dangerous criminal gangs in the country due to its links to drug trafficking, hitmen, extortion, and other high-impact crimes, was serving a 34-year sentence for murder and organized crime. However, last week, when Villamar was going to be transferred to a maximum security prison, the Government reported that the Armed Forces realized “the non-presence” of Fito.

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