QUITO, Ecuador Ecuador's executive branch on Monday said it will not recognize any act of congress until the judiciary resolves a dispute between two parties over which candidate is the speaker of the unicameral legislature.
"Until the constitutional tribunal has ruled, the national government will not recognize as valid any resolution adopted by congress," a statement by the president's office said.
The executive decision comes at a time when the 123-member congress is debating a sweeping privatization bill aimed at allowing private-sector firms to buy up to 51 percent stakes in state electricity, oil and telecommunications companies.
The bill was presented July 13 and classified economically urgent, which means it automatically becomes law unless congress approves or rejects the bill within 30 days, or August 13.
The constitutional tribunal is expected to rule in seven to 30 days.
The dispute and executive decision only add to uncertainties over the state of the South American nation's democracy and economy just as foreign bond holders mull a $6.65 billion debt restructuring plan.
They are scheduled to vote on the proposed bond swap on Wednesday and it must garner 85 percent support to pass.
Last year Ecuador had inflation of 60.7 percent while its economy contracted 7.5 percent and its currency, the sucre, shed two-thirds of its value, forcing it to default on more than $6 billion of its external public debt.
More than 70 percent of Ecuador's 12.4 million people live in poverty and the unemployment rate is 18 percent, according to the United Nations.
The Andean nation is in the process of adopting the U.S. dollar as its main currency as a means to shore up its sagging economy and restore investor confidence.
Panama adopted the greenback almost a century ago. Argentina has kept its peso at par to the U.S. dollar through a currency board system since 1991.
(Reuter)