Ministry of Economy estimates that closing ITT will cost the country $500 million by 2024, while demanding environmental compensation | Economy | news

The Minister of Economy and Finance, Juan Carlos Vega Malo, assured that the first calculation concluded that the impact of closing the ITT field in 2024 would be $500 million. At the same time, they analyze the management of compensation measures from an environmental perspective.

This was explained by the officer who appeared before the media in the first interaction on various topics. Since Ecuador has decided to dump millions of barrels of crude oil in the ground, the idea would be to seek some form of compensation from the world through thematic bonds.

According to a report by citizens who voted on August 20 on a popular proposal to drop crude oil from the ITT block (43), production should be shut down on August 31, 2024. Plus, it will cost billions more to tear down the infrastructure.

Also, the minister said he spoke with Energy Minister Andrea Arrobo to generate private investment from mature fields and achieve higher oil production by 2024.

Meanwhile, Minister Vega Malo promised that fuel subsidies will be reviewed as part of the measures they are investigating. They analyze this “in great detail”, and this will be done by looking for ways to avoid affecting those who need it. He explained that since this is a fundamental issue, they are conducting analysis to present the issue as a policy to President Daniel Nobowa.

The statements came in the midst of an event where the minister also spoke about the tax law, which is currently being considered as an option to generate more liquidity for the country. He explained that while the legislation represents a sacrifice of about $200 million due to tax cut issues, the relief will allow them a temporary boost in income. In addition, the incentives the law brings will attract new investments over time, creating growth in the economy.

When asked about the status of legislators who extended relief umbrella to all taxes of Internal Revenue Service (SRI) and other state agencies, the minister said that legislators are more responsible in the treatment. The law and assurance that the decision of the Legislature was to enter into an intermediate one established that the political sector of the country could not benefit from this amnesty. This will put an end to any speculation about a possible conflict regarding the loan of Exportora Pannera Noboa, which is linked to the family of President Daniel Noboa. (YO)