[REVISION HISTORY]

Ecuador VAT refunds, El Niño prep, and procurement issues

Updated 3 times since CLSTR started tracking revisions of this situation.

What changed

2026-09-04 14:25 UTC → 2026-09-04 21:51 UTC · added ~~removed~~

In early 2026, Ecuador’s tax authority (SRI) implemented changes to the VAT refund program for seniors over 65 and persons with disabilities, narrowing eligible expense categories to food, health, clothing, housing, and education. By August 2026, government disbursements for state provider payments, public services, and VAT refunds rose by 38% compared to 2025, totaling 5,291 million USD. Within this, 321 million USD was allocated for VAT refunds, with reports indicating these specific refunds for seniors and people with disabilities have risen by 76%. To mitigate climate risks from the approaching El Niño phenomenon, the government has allocated over 100 million USD for preventive actions and infrastructure maintenance in the electricity sector. In coordination with the United Nations, efforts are also being strengthened regarding food security, health, and water sanitation, as an estimated 1.3 million people across 17 provinces face potential exposure. In response to these risks, the government has declared a red alert. Administrative challenges continue in Guayaquil, where the Municipality reports that the National Service for Public Procurement (Sercop) has suspended approximately 90% of its contracting processes. This freeze, totaling 56 million USD, affects critical sectors including health, public works, and the procurement of fuel and medicine, potentially hindering local preparations for flooding and infrastructure needs.

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