Ecuador lawmakers want privatization bill scrapped

QUITO, Ecuador, (Reuters) -- A majority of deputies in Ecuador's Congress asked the administration Tuesday to scrap its privatization bill, congressional sources said.

The petition by the group of deputies headed by Congresswoman Susana Gonzalez came a day after an executive order stating the government of President Gustavo Noboa would not recognize any act of the legislature until the Constitutional Tribunal rules on who holds the presidency of the unicameral chamber of 123 deputies.

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 rejects the bill within 30 days.

The Constitutional Tribunal is expected to rule in six to 30 days.

Legislators said they want the privatization bill reintroduced after the ruling so they can debate the matter "without pressure."

The dispute over the bill fuels uncertainties over Ecuador'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 Friday 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.

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