Correa says banking system is secure, announces payment on global bonds

President Rafael Correa says that a review of Ecuadorian banks shows that they are in a strong position to withstand the current economic downturn.

President Rafael Correa

“The banks are very secure with high levels of liquidity,” the president said during his weekly sabatina television broadcast. “The solvency ratios are high and management has handled the situation with a high level of responsibility.”

The coordinator of National Economic Policy, Patricio Rivera, said his office is in close contact with banks and reviews their position on a continuing basis. “The integrity of the banking system is strong and it is our intention to see that that strength is maintained. Reserves are at very high levels right now,” Rivera said during Saturday’s broadcast.

Correa acknowledged that the drop of oil prices has put stress on the banking system and well as the government budget. “We are still able to make payment on our global bonds, which the opposition said we would not do.”

A number of foreign press reports predicted Ecuador would default on the December debt payment. “As usual, they are wrong,” Correa said.