Ecuador repeals law ending fuel subsidies in deal to stop protests

Indigenous people watch President Lenin Moreno and leaders of the indigenous movement on a television in the San Patricio Spirituality Centre in Quito, Ecuador, 13 October 2019Image copyright
EPA

Image caption

People gathered at venues all over the country to watch the televised talks

Ecuador’s government has agreed to restore fuel subsidies in a deal with indigenous leaders to end mass protests that have brought the capital, Quito, to a standstill, the UN says.

It came after the two sides held talks brokered by the UN and the Roman Catholic Church.

The talks, which were broadcast live on state television, came after nearly two weeks of violent demonstrations.

President LenĂ­n Moreno had imposed a curfew enforced by the military.

The announcement after Sunday’s meeting sparked late night celebrations among protesters on the streets of the capital.

A joint statement said the government had withdrawn an order removing the fuel subsidies.

“With this agreement, the mobilisations… across Ecuador are terminated and we commit ourselves to restoring peace in the country,” it said.

The two sides will now discuss a new law to ensure subsidies are not exploited by people who smuggle fuel to neighbouring countries.

The protests began after the government announced an end to fuel subsidies as part of public spending cuts agreed with the International Monetary Fund (IMF) in return for a loan.

Mr Moreno has said the subsidies, introduced in the 1970s at an annual cost of $1.3bn, were no longer affordable. Eliminating them was part of his plan to shore up Ecuador’s flagging economy.

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Media captionClashes, chaos, fire and smoke engulf Quito
source: bbc.com