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The so-called Social Spending Redistribution Law, promoted by the president, determines an increase in the state bonus that around 1.9 million poor people in Ecuador receive monthly, from the current US$35 to US$50 for each beneficiary.

To finance this increase, the legal text proposes obtaining resources not only from the general budget of the State. 54% of the amount required for the increase in the state bonus would arise from administrative and tax measures that impact banking. And there comes the controversy.

“Before, the losses of the financial system were socialized, now the profits will be socialized,” said President Correa, who this weekend, during a meeting with Ecuadorian emigrants in Spain, insisted on remembering the impact it had on the population in Ecuador. the banking crisis of the late 1990s.

Rafael Correa has indicated that what his initiative seeks is to “transfer the banking surpluses to the poorest”… The article continues.<end_of_turn>
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And in his usual Saturday program, in mid-October last year in Ecuador, he even warned: “bankers who don't want to, don't worry, we will buy the bank and nationalize the bank.”
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“Apart from political activity”

Faced with this, the Association of Private Banks of Ecuador has not been slow to show its concern.

“We request that private banks be kept out of political activity in which they have nothing to do, for the benefit of the tranquility and confidence of their seven million clients, who maintain deposits of more than US$20 billion,” the Association said in a statement.

In the same sense, last week in an unusual event, several banks sent an email to their clients in which they pointed out the risk of pretending that financial entities "are not managed with technical criteria but with political criteria."

And the political factor has been present in the discussion of the increase in the so-called Human Development Bonus, now that the electoral process has begun in Ecuador with a view to the presidential elections of February 2013.

In fact, it all started when former banker Guillermo Lasso, when officially proclaiming his presidential candidacy on behalf of the CREO movement, launched the proposal to increase the bonus to US$50, pointing out that he would finance this by reducing state spending on government propaganda.

Immediately afterwards, other candidates also offered increases in the bonus, until Rafael Correa, who is seeking presidential re-election, announced the sending to the Assembly of the Social Spending Redistribution Law project.

Correa-banking relationship

Former banker Guillermo Lasso, now a presidential candidate, promised a bonus for the poor financed with money saved from government propaganda.

Correa's relationship with Ecuadorian banking has had its own history. Analyst Jorge León remembers that the president came to power in 2006 with a speech about regulating financial entities.<end_of_turn><eos>