Ecuador Seeks Tax Hikes to Fund Security Against Cartels
• Noboa seeking to raise taxes in Ecuador, including lifting value-added tax from 12% to 15%, to fund security measures against drug cartels • Tax hike could provide $1B in revenue this year, $1.3B annually after • Bonds rallied on the news, with 2040 notes climbing over 1.1 cents on the dollar • Comes after S&P cut outlook on Ecuador debt to negative, citing security crisis limiting deficit cuts • Noboa also moving to loosen labor laws and widen international arbitration via referendum