Articles
Business intelligence and analysis on Ecuador
BIESS Cuts Credicasa Mortgage Rate to 2.99% and Expands Coverage to $71,500 as Social Security Bank Moves to Fill Housing Credit Gap
The Banco del Instituto Ecuatoriano de Seguridad Social (BIESS) reduced its Credicasa mortgage interest rate to 2.99% -- the lowest in over a decade -- and expanded maximum eligible property values to $71,504, including single-bedroom units for the first time. The move positions BIESS as an alternative channel for homebuyers who cannot access the stalling Mi Casa Propia programme, and reflects the social security bank's strategy to increase mortgage disbursements amid Ecuador's 1.8-2.2 million unit housing deficit.
Mi Casa Propia Stalls: Over 60% of Loan Applications Fail to Qualify Despite $100 Million Government Allocation
More than 60% of applications submitted to Ecuador's Mi Casa Propia subsidised housing programme have failed to meet qualification requirements, despite a $100 million government allocation designed to expand homeownership among lower-income households. The high rejection rate exposes structural barriers in Ecuador's mortgage market -- including widespread informal employment, land title irregularities, and income documentation gaps -- that government subsidies alone cannot resolve.
Elecaustro Launches Bid for 100MW Replacement Barge as Karpowership Contract Expires, Exposing Grid's Continued Rental Dependence
Elecaustro issued a competitive bid to lease a power generation barge of up to 100 megawatts to replace capacity lost when its Karpowership contract expired on January 7 after a 110-day term. The procurement underscores Ecuador's continued dependence on rented emergency generation -- 334MW across three barges and two thermal plants -- even as the government advances a $2.43 billion long-term power expansion plan targeting 1,471MW of new capacity.
UAE and Ecuador Conclude CEPA Negotiations: 98% of Products Covered, 75% at Zero Tariff, March Signing Planned
Ecuador and the United Arab Emirates concluded technical negotiations on a Comprehensive Economic Partnership Agreement (CEPA) at the World Government Summit in Dubai, with a formal signing planned for March 2026. The deal grants preferential access for 98% of negotiated Ecuadorian products, with 75% entering the UAE at zero tariff immediately -- covering over 4,000 agricultural and industrial goods. Quito projects annual exports to the UAE could reach $1 billion by 2030, up from $261 million in non-oil trade in 2024.
Banco del Pacífico Targets $1 Billion in New International Financing After Landmark $500M JP Morgan Deal and $225M CAF Guarantee
Banco del Pacífico disclosed plans to raise an additional $1 billion in international financing during 2026, building on a landmark $500 million facility from JP Morgan -- the US bank's first-ever transaction in Ecuador -- and a $225 million partial guarantee from CAF earmarked for SME lending. The state-owned bank reported 2025 net profit of $206 million, up 30% year-on-year, and placed over $1 billion in productive-sector loans.
Noboa Enters Second Term Under Pressure: 60% Disapproval, Referendum Defeat, and Record $230M Security Pledge
President Daniel Noboa begins his second term confronting a stark contradiction: macroeconomic indicators are the strongest in a decade -- country risk at 460 points, reserves at $9.975 billion, inflation at 2.1% -- yet 60% of Ecuadorians disapprove of his administration and 72% see a negative future, according to CIESS polling. The government pledged a record $230 million security investment after 2025 registered the most violent year in the country's history.
CAF Launches Economic Forum 2026 in Quito and Signs $450,000 Technical Cooperation Agreement to Design Ecuador's National Competitiveness Policy
CAF (Development Bank of Latin America and the Caribbean) held a high-level event in Quito to launch the II International Economic Forum and signed a $450,000 non-reimbursable technical cooperation agreement with Ecuador's Ministry of Production, Foreign Trade and Investment. The agreement will fund the design of a comprehensive national competitiveness policy aimed at improving productivity across Ecuador's non-extractive sectors.
Decree 273 Reshapes Ecuador's Mining Investment Calculus: New 3-8% Royalty Scale, 100% Self-Power Mandate, and Tightened Exploration Timelines Take Effect
Executive Decree 273, signed by President Noboa on December 31 and effective January 1, 2026, introduced the most significant changes to Ecuador's mining regulatory framework in over a decade. The decree establishes a 3-8% sliding royalty scale based on commodity prices, mandates that all mining projects supply 100% of their electricity needs, and tightens exploration timelines -- reshaping the cost structure for an $8 billion+ investment pipeline.
BioMar Takes Full Ownership of Ecuador Aquafeed Unit and Plans 37% Capacity Expansion to 410,000 Tonnes
BioMar Group acquired the remaining 30% shareholding in its Ecuadorian subsidiary from the Lanec family, taking full ownership of one of the world's largest aquafeed production facilities. The company will expand capacity from 300,000 to 410,000 tonnes by Q3 2026, with a further 200,000-300,000 tonne phase planned -- a major vote of confidence in Ecuador's shrimp export engine despite US tariff headwinds.
Chevrolet Launches 2026 Captiva PHEV in Ecuador as National EV Sales Surge 159% Year-on-Year to 2,234 Units
GM Ecuador launched the 2026 Captiva PHEV at $32,999 -- its third electrified model in four months -- as Ecuador's electric vehicle market posts extraordinary growth: 2,234 fully electric units sold January-August 2025 (up 159% YoY), with hybrids adding 11,210 units (up 27.4%). BYD leads market share, but Chevrolet's aggressive pricing strategy signals intensifying competition in Latin America's fastest-growing EV market.
Sinopec Wins $105M Petroecuador Contract for Amazon Drilling Campaign Targeting 12,000 bpd Across Orellana and Sucumbios
Petroecuador awarded a $105 million drilling services contract to China's Sinopec for a multi-well campaign across Orellana and Sucumbios provinces in the Ecuadorian Amazon. The programme targets 12,000 barrels per day of incremental production and is expected to create 2,500 local jobs. The contract deepens China's growing role in Ecuador's upstream oil sector.
Canada and Ecuador Conclude Free Trade Agreement Negotiations After Six Rounds; Ratification Pending
Canada and Ecuador concluded free trade agreement negotiations in January 2025 after six rounds of talks launched in April 2024. Under the agreement, Ecuador will remove duties on 97.2% of tariff lines. The deal reflects parallel diversification strategies as both nations seek to reduce dependence on the US market amid escalating Trump-era tariffs.
