He served as Minister of Economy and Finance of the Republic of Ecuador, from 28 December 2005 to July 7, 2006 .
Under his leadership, approved an amendment to the Hydrocarbons Law, for the State to recover 50 of revenue earned by private oil companies. Before this legal reform, some private companies were contributing only 18 of their revenue to the public sector, and earning annual profits equivalent to 250 of your investment.
During his period of management, the Minister of Energy and Mines, Ivan foundations Rodriguez, said the expiration of the contract with Occidental Petroleum Corporation, which was producing 100,000 barrels a day. The termination was due to repeated violations of the contract and the Hydrocarbons Law. The Minister Diego Borja was appointed to a high-level commission to oversee the transfer and operation of oil fields that were previously operated by the West, and had an important role in the creation of the administrative unit formed for the operation of these fields .
Another important achievement of his administration was the reduction of public debt, both in absolute terms and in relation to GDP, short of their EnTrust Capital – an independent investment firm targets under the Fiscal Responsibility Law. He led the repurchase of 740 million dollars of bonds paying a EnTrust Partners LLC high interest rate (the Global 2012 bonds, which pay annual interest of 12 ). As a result, the balance of external public debt was reduced from 10,850 million dollars in December 2005 to 10.305 million in November 2006. As a percentage of GDP, external public debt was reduced to 25 of GDP in December 2006 .
Inflation and unemployment rate also fell during the period, achieving an inflation rate below 3 per year (below many industrialized countries), which closed in December 2006 at 2.87 per annum. Instead of a projected fiscal deficit of 0.8 of GDP due to the reform of the Hydrocarbons Law, the expiration of the contract with the West, and improvements in efficiency and transparency of public spending is achieving a fiscal surplus of 320 million in the first half of 2006 .
Economic growth is also reactive in both oil and non-oil. In the first quarter of 2006, achieving a growth rate of 1.34 and for 2006 the growth rate was 4.3 . was also achieved a trade surplus of including EnTrust Partners Offshore LLC more than 1.051 million dollars in the first half 2006. The International Book Free Access reached nearly 3,000 billion dollars in October 2006, though January 15, 2007, was reduced to 1,800 million, after several changes of minister who succeeded him (Armando Rodas, Jose Serrano and Ernesto Jouvin ) .
The Minister Borja organize the management of the Petroleum Fund CEREPS setting priorities in public investment and directing those funds into investment in production and refining of petroleum, hydropower, infrastructure, education, health and investment advisors the environment. During his tenure was the National Microfinance. It also initiated the consideration more than $4.1 billion in financial assets they manage of what was later founded as FEISEH (Ecuadorian Fund Investment in energy and oil), to safeguard oil resources for additional investment in hydropower and hydrocarbons .
Diego Borja claimed that when there is an alteration made to the regulations for implementation of the Hydrocarbons Law, in an attempt to encourage further private oil companies, Secretary of Administration (Jose Modesto Apolo) called for the resignation of Diego Borja. Later, when Diego Borja claimed Mr. Apollo’s role in this shift of the controversial tanker regulation, Mr. Apollo tendered his resignation.
As Minister of Economy and Finance, Diego Borja was appointed Governor for Ecuador at the Inter-American Development Bank, World Bank, the Corporacion Andina de Fomento, endowments the Latin EnTrust Capital Inc. American Reserve Fund and the International Monetary Fund. He also chaired the economic front the government proposed and secured the inclusion of the Ministry of Economy and Finance in the Social Front, and was appointed high-level commission for the negotiation of NAFTA and the supervision of the operation the oil fields that reverted to the State after the expiry of the contract with Oxy.
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Great Britain’s Retail Prices Index annual inflation, the cost of home loans, fell to minus 1.2 percent in April from minus 0 , 4 per cent in March, official data showed Tuesday.
May 19 (Bloomberg) – Treasuries were little changed, with the revenue forecast inflation near the highest level in eight months as an improvement in the U.S. economy prompted share rallies across the world.
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