VZCZCXYZ0000
PP RUEHWEB

DE RUEHQT #2543 3271831
ZNR UUUUU ZZH
P 231831Z NOV 07
FM AMEMBASSY QUITO
TO RUEHC/SECSTATE WASHDC PRIORITY 8094
INFO RUEHBO/AMEMBASSY BOGOTA 7118
RUEHCV/AMEMBASSY CARACAS 2773
RUEHLP/AMEMBASSY LA PAZ NOV LIMA 2152
RUEHGL/AMCONSUL GUAYAQUIL 3059
RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS QUITO 002543 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
TREASURY FOR MMALLOY AND MEWENS 
 
E.O. 12958: N/A 
TAGS: ECON EFIN EINV SENV PGOV EC
SUBJECT: ECUADOR ECON WEEKLY: New Central Bank Officials; Repsol 
Hints at Arbitration; New Minister of Environment 
 
REF. A: QUITO 2277 
 
      B: QUITO 1680 
 
¶1.  (U) The following is a weekly economic update for Ecuador that 
describes notable developments that are not reported by individual 
cables. 
 
New Officials at the Central Bank 
--------------------------------- 
 
¶2. (U) On November 9, the General Manager and Deputy General Manager 
and four other high officials resigned from the Central Bank, citing 
personal reasons.  On November 15, the Central Bank Board of 
Governors (which now has a majority appointed by President Correa) 
appointed Mauricio Martinez (with 17 years experience in the bank) 
as the new General Manager and Victor Campoverde as the new Deputy 
Manager.  Both recently participated in a study tour sponsored by 
USAID where they visited the US Federal Deposit Insurance 
Corporation and the Institute of Deposit Guarantee in El Salvador. 
Currently one of the major issues facing the Central Bank is a GOE 
plan, being led by members of the Central Bank Board, to merge the 
Superintendence of Banks with the Central Bank. 
 
Repsol Warns Ecuador of Possible Arbitration 
-------------------------------------------- 
 
¶3. (U) On November 15, Repsol of Spain suggested that it might seek 
international arbitration over the GOE's move to increase the 
State's share of "extraordinary" oil revenues generated by most 
private oil firms to 99% (Ref A).  Repsol spokesman Federico Cruz 
said, "We are ratifying our position to negotiate in friendly terms 
with Ecuador; if that fails, we can resort to arbitration."  Cruz 
implied that Repsol would allow six months to reach an agreement 
before seeking arbitration.  Repsol is one of Ecuador's largest 
foreign operators with a daily output of around 65,000 barrels/day. 
GOE officials said they will analyze the case when the Minister of 
Petroleum and Mines, Galo Chiriboga, returns from his visit to South 
Arabia and Asia. 
 
New Minister of Environment 
--------------------------- 
 
¶4. (SBU) In the middle of October, all Cabinet members were 
requested to present their resignations to President Correa.  On 
November 14, the President accepted the resignation of the Minister 
of Environment, Ana Alban.  The GOE criticized Alban for not 
providing immediate answers to the UNESCO announcement to place the 
Galapagos Islands in the list of endangered World Heritage sites. 
In addition, Alban was censured by Congress when she failed to show 
up to defend the presidential shark fin decree in September (Ref B). 
On November 15, the President designated Marcela Aguinaga, 
previously the Under Secretary of Aquaculture, as the new Minister 
of Environment.  Aguinaga issued the shark fin decree when she was 
Under Secretary of Aquaculture. 
 
JEWELL