Ecuador ’s security markets rests on a legal framework that enables it to operate and to multiply. In fact, the Securities Market Law, associated with the Financial Institution Law, is the mainstay of Ecuadorian securities market growth.
The possibilities for an ever larger number of operations involving public divestiture and State enterprise privatisation to be handled through Quito and/or Guayaquil security markets have generated expectations that are very well received by the world's major investment banks, such as Merrill Lynch, Salomon Brothers and Lehman Brothers of the United States. The Modernization Law, geared toward privatising State enterprises, opens up interesting prospects for investment through the security markets . “This is an initiative seeking transparent development of the stock market", states a recent Merrill Lynch report.
Thanks to the ambitious plan of privatisation and government divestiture promoted by this administration, and major changes in the social security system [ pension funds ], the security markets are becoming even more important; they are also strategic points from which to mobilise capital toward those companies that wish to enter new markets without necessarily borrowing from the bank.
