ECUADOR | Power sector declared in emergency. President Lucio Gutiérrez last week declared a state of emergency in the electricity sector. This is not an unusual occurrence, but this time its distinctive feature is that it has been declared preventively, before any sign that the reservoir of the Paute hydro complex — responsible for about 60% of the supply — is being depleted, as has tended to happen towards the end of the year.
What the declaration means is that public funds are set aside to cover oil-fired generation should the rains not come and Paute fail to deliver. Over the past three years the system has been able to offset the decline in supply from Paute during the dry period, but there has been a tendency to react late to the effect of drought on the reservoirs.
BOLIVIA | IMF eyes fiscal accounts. Commenting on the situation in Bolivia after the recent change of government, IMF chief spokesman Thomas Dawson noted that before these events `the budget deficit was at a level that I think raised questions of sustainability.' Now, he added, `obviously things have gotten even more difficult.' Dawson said that the next foreseeable step is the despatch of an IMF mission to Bolivia. `We will continue to follow a flexible approach that takes into account the country's social needs and constraints,' he said. `And there is a framework in place for continuing Fund assistance in the context of the current standby.'
End of preview - This article contains approximately 320 words.
Subscribers: Log in now to read the full article
Not a Subscriber?
Choose from one of the following options
