Based on the activity, the minimum number of juvenile employees working at each company, with regards to the net increase in workers each fiscal year, is the following:
In Official Gazette 218, published in 10 April 2018, The Superintendency of Companies, Value and Insurance issued the Resolution to determine the mandatory and prohibited clauses within all kinds of insurance contracts.
Regarding the mandatory clauses that must be included in the insurance contract, following are the most important changes:
Under the prohibited clauses are the following:
Under this resolution, Insurance companies must follow some conditions for the issuance:
This Resolution is a remarkable advance in the insurance sector since it implies a modernization in terms of the issuance of the policies and the way in which the insurers must make payments to their insured.
It is recommended for Insurance Companies to analyze the implications of this Regulation and to adjust to this new reality, emphasizing the revision of the policy clauses in the different lines of businesses in which they operate.
By De Sola Quintero Rene in INSURANCE , INSURANCE , News and Bulletins
Teleworking could be:
By ZVS Tobar in CORPORATE, M&A , Featured , News and Bulletins
The Ecuadorian Hydrocarbons Minister, along with other authorities of this field, visited Houston the first days of October to promote new projects and investment opportunities in the oil & gas sector. These projects and investment opportunities are both in the upstream and downstream sectors.
Positive news for investors seeking upstream projects, a sector that has been left almost exclusively to public investment, is the return to a participation sharing agreement, leaving behind the failed and most controversial service contract agreement that set a tariff per produced barrel of oil.
With the return to the participation sharing agreement under which the investor directly participates from the oilfield production, the Ecuadorian government sends a clear signal to the private investors seeking to improve oil production and stimulate the exploration of the South East of the Ecuadorian Amazon region.
These are the 4 investment projects in the agenda of the Ecuadorian government:
1. Intracampos Bid Round
The so-‐called “Intracampos” fields are composed by 8 blocks that include 13 fields, located in the Northeastern Ecuadorian Amazon region and are amongst oilfields in production. The total amount of proven reserves of the Intracampos oilfields is 157.3 MM bls of oil (907.5 MM bls of OOIP).
For the development of the Intracampos oilfields, the Ecuadorian government is expecting an approximate investment of USD 1.2 billion.
The Intracampos bidding round will probably be launched by the end of November or first days of December 2017.
2. South East Blocks
The South East of the Ecuadorian Amazon Region continues to be unexplored. Notwithstanding, it is an area that holds high expectations as there have been found 2 oil bearing reservoirs in Block 80 and the discovery in Block 64 of Peru (Situche Central) that is located in the border between Ecuador and Peru.
After the failed South East bidding round of 2013, under a service contract model by which the investor was paid with a tariff per produced barrel, this time the Government has made it clear that this new bid will be held under a participation sharing agreement, a model where investors are given an incentive as they can take advantage of any upside during the life of the contract.
This bidding is expected to be launched by the Ecuadorian government the first half of 2018.
3. Pacific Refinery
This was the flagship project of former President Rafael Correa´s administration, but it didn’t manage to attract investors due to the high amount of investment and unclear business model proposed.
This project’s justification is the limited refinery capacity of the country that is still unable to meet the internal fuel demand and, in turn, forces the government to make imports.
The Ecuadorian government has announced that this project requires an investment of USD 8.2 billion, almost half the sum announced by the prior government. Now the government expects private investment for the development of this project as it has stated that it would not compromise public funds.
The business model proposed for the development of this project has two options: (1) the payment by the Ecuadorian State of a tariff per refined barrel, which involves a BOT project; or, (2) the Ecuadorian State would sell the oil to the refiner at international price, and the Ecuadorian State would commit to buy the refined oil products from the refiner at international price.
Unlike the proposal by the former Government to refine oil imported from Venezuela, the current proposal is to refine the oil produced from the called ITT (Ishpingo-‐Tambococha-‐Tiputini) Blocks located in the Ecuadorian Amazon Region. Currently, the Tiputini oilfield produces 50,000 bpd, and the Government expects to increase its production to 100,000 bpd. The Ishpingo and Tambococha oilfields are expected to be developed in the short term.
The processing capacity of the Pacific Refinery has been proposed on 300,000 barrels per day.
4. Monteverde Maritime Project
The maritime terminal of Monteverde is an infrastructure in which the Government has already invested close to USD 600 million. The proposal is to find either a strategic partner to invest approximately USD 300 million for the development of a Regional Hub Storage and Distribution Center, or a private investor to buy this project to directly develop it.
This project finds attractive the fact that the Pacific Coast has a storage deficit for liquid products (fuel, chemicals) that, in turn, becomes an opportunity for the development of a Regional Hub Storage and Distribution Center. Moreover, taking into account the strategic position of Ecuador in the Pacific and the existence of infrastructure that needs to be improved and maximized.
The business model for this project has been left open to the investor needs, and can be developed under a concession model, a contract for the use of the infrastructure, a joint venture, or any other business model proposed by the investor.
By Tobar Bernardo in CORPORATE, M&A , Featured , News and Bulletins
On March, 17th the Association of Private Banks of Ecuador (Asobanca) adopted two temporary measures to address the economic crisis that is facing the national economy. 1) Restructuring loans by deferring payment for 60 days with no surcharge for late payment at the end of the originally agreed period, and 2) Allocation of US $12 billion dollars for restructuring, renewal and adoption of new loans. These measures are aimed for microcredits, SMEs and the general public.
On March 17, the Association of Private Banks of Ecuador (Asobanca) adopted two temporary measures to address the economic crisis the national economy is undergoing. The restructuring of loans by deferring payment for 60 days, with no late fee at the end of the originally agreed period and the allocation of US $ 12 billion for restructuring, renewal and new loans. These measures are aimed for microcredits, SMEs and the general public.
Just a few days ago the national government announced the adoption of urgent economic measures, consisting in tax measures and cuts in the general state budget. In contrast, and with the objective of maintaining the economic stability of the national productive force, Asobanca ordered measures to generate liquidity, trying to preserve the economic stability of the country while the health emergency caused by COVID-19 lasts.
Debtors may request to refinance their credits or, the deferment of 60 days without late payment at the end of the originally agreed period for the collection of: personal credits, microcredits, as well as those granted to small companies. However, these measures announced by Asobanca will not be of general nature since a case-by-case analysis is required.
The announced measures do not yet have clear implementation guidelines. It is not clear who will assume the cost of refinancing the loans nor the transparency criteria that will applied to do so. In the same way, a pronouncement from the Superintendence of Banks on the applicability of the measures remains pending as well as the incorporation of similar measures in public banking.
According to Julio José Prado, president of the Association of Private Banks
“[B]anking plays a fundamental role in two aspects: maintaining dynamism in the economy and keeping the financial system operational, despite the emergency. That is why, the bank will allocate $ 12 billion, both for restructuring and renewal of existing loans, and new credit. This is possible because the bank has achieved a sustained capitalization process, which allows it to respond in complex moments like now.”
It should be noted that the financial sector remains open during the health emergency. However, private financial institutions have embraced teleworking, to the extent possible.
Disclaimer: This document is informative and does not, and is not intended to, constitute legal advice.
By ZVS Tobar in CORPORATE, M&A , News and Bulletins