Article: ECUADOR: GOVERNMENT HIKES ROYALTIES ON PETROLEUM COMPANIES, PRESSURES BANKS FOR LOWER INTEREST RATES.

In the days immediately after his party's overwhelming win in an election to name members of an assembly to rewrite the national Constitution (see NotiSur, 2007-10-12), Ecuador's President Rafael Correa announced plans to heavily tax private companies extracting oil and pressured banks to reduce interest rates. The taxes on petroleum companies would take 99% of additional profits beyond the price of oil at the time the companies signed their contracts with the government. Correa also announced Ecuador's intent to rejoin the Organization of Petroleum Exporting Countries (OPEC). 99% of "extraordinary" profits to generate US$700 million

High petroleum prices ...

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