Politics
Investor Favorite Now Seen Heading to Runoff in Ecuador Vote
By- With 98.42% counted, Lasso has 19.67%, Perez 19.50% of vote
- Bonds plunged this week on fears Lasso failed to make runoff
Ecuador’s conservative presidential candidate Guillermo Lasso overtook a rival as the final votes were counted from Sunday’s election, boosting his chances of securing a place in the April runoff.
Lasso, a career banker who wants close ties with Washington, now has a razor-thin margin over indigenous party candidate Yaku Perez, an environmentalist who opposes big mining projects.
At 5:30 a.m. local time, Lasso had 19.67%, followed by Perez’s 19.50%, with 98.42% of votes counted. With more than 10 million ballots cast, just 15,926 votes separated the two. Arauz retains the lead, with 32.6%.
Guillermo Lasso, presidential candidate of the Creando Oportunidades (CREO) party, center, speaks to members of the media after casting a ballot during the first round of the presidential elections in Guayaquil, Ecuador, on Sunday, Feb. 7, 2021.
Photographer: Vicente Gaibor/Bloomberg
If the result holds through the completion of the count and a possible recount, Lasso will face socialist economist Andres Arauz on April 11.
Ecuador’s bonds rallied on Wednesday, as updates of the vote count showed Lasso closing the gap. The securities maturing in 2040 gained 2 cents on the dollar to 44.51 cents, paring two days of steep losses following the first round on Sunday.
Why Ecuador’s Sunday Vote Matters for the Bond Market: QuickTake
The count swung in Lasso’s favor as the National Electoral Council reviewed votes from precincts that had reported errors and had therefore not yet been fully accounted for.
Perez has alleged fraud and called on his supporters to remain vigilant.
Ecuador, which gets most of its export revenue from crude, bananas and seafood for its $108 billion economy, relies heavily on multilateral lending including an agreement with the International Monetary Fund. Lasso has vowed to uphold that deal and a recent restructuring of the country’s bonds.
Arauz, a 36-year-old protege of former President Rafael Correa, has campaigned on putting an end to austerity, providing cash payments to families and seeking alliances with ideologically-aligned countries.
Outgoing President Lenin Moreno, a former Correa ally who then broke with him after winning office, is not seeking re-election.
Ecuador’s foreign reserves stand at just $6.6 billion.
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