Ecuador Congress Fails to Overturn Noboa’s Veto on VAT Hike (1)

(Updates with bonds reaction starting in fourth bullet.)

• Ecuador’s National Assembly failed to overturn a veto by President Daniel Noboa, allowing his decision to increase the value-added tax to go ahead
• In a remote session, opponents of Noboa’s veto, which established a VAT band between 13% and 15%, compared with the present 12%, failed in three votes to reach the necessary two-thirds majority to block his changes to the bill
• NOTE: The Finance Ministry estimates that the tax hike will provide $1b in revenue in 2024 and at least $1.3b annually going forward amid a fiscal and a security ...