www.forbes.com Reuters, 03.11.03, 1:08 PM ET CARACAS, Venezuela, March 11 (Reuters) - The Andean Development Corporation (CAF) approved on Tuesday a $100 million loan for Ecuador in the latest sign that its new government has won approval from multilateral lenders for its economic austerity program. The CAF, which is the regional financing arm of South America's Andean nations, said the 10-year-loan would have two years of grace. The International Monetary Fund has praised the economic policies of the new government of President Lucio Gutierrez who took office on Jan. 15. The IMF is expected to soon loan Ecuador around $200 million. The Andean nation has cut back on spending and frozen some wages in an effort to secure the loan which it needs to help pay close to $1.5 billion in debt principal in 2003. Ecuador is seen as strapped for cash after departing President Gustavo Noboa spent a windfall from high oil prices by boosting public-sector wages and leaving some $722 million in unpaid bills for the next administration. About 18 percent of CAF's loan portfolios are with Ecuador.

www.washingtonpost.com By Marcela Sanchez Special to washingtonpost.com Friday, February 14, 2003; 11:27 AM

At a time when Washington's relations with other nations are fraught with tension, there is something endearing in hearing a foreign leader effusively proclaiming that he wants to become the best U.S. ally around.

Lucio Gutiérrez, the new Ecuadoran president, did just that during his trip to Washington this week. And, genuine or not, his gesture appeared to defuse any suspicions about his intentions.

This was no small feat, especially considering that Gutiérrez is the same former coup-plotting colonel who two years ago helped topple an elected president. Elected president himself in November in a tough campaign in which he ran as the populist candidate of the left, he has been described by some as part of a leftist force of ``evil'' taking over Latin America and is often likened to Venezuela's polarizing president, Hugo Chávez.

How can such a leader suddenly become Washington's best ally? Or more importantly for Gutiérrez, what future would such a president have when it is distrust and even hatred of Washington's dominance that propels outsiders like him into office?

In his defense, Gutiérrez says he is a victim of a ``satanized'' image. He argues rather that he is the embodiment of changing times in the region--not the radical changes and revolutions that years ago transplanted the Cold War to Latin American soil, or that have left modern-day Venezuela a broken nation.

Gutiérrez says there are ``fresh, gentle and positive'' winds of change pushing leaders to restore faith in the democratic system. It is not a matter of whether they come from the left or the right, but whether they will be able to address the growing needs of their people. Washington can choose to help, or turn its back. Right now it seems to be giving Gutiérrez the benefit of the doubt.

Washington generously opened its doors--and its wallet--to Gutiérrez, who has been in office barely a month. He is the first Ecuadoran head of state to pay an official visit to the White House in more than a decade. The International Monetary Fund formalized a $200 million loan agreement that his predecessor had been unable to obtain despite nearly a year of trying. And in the U.S. budget plan unveiled last week, President Bush requested $15 million in military assistance for Ecuador--15 times more than sought the year before.

Why such generosity? Possibly because in such a short period of time, Gutiérrez has said and done all the right things in the eyes of official Washington. He has sought and apparently taken to heart the recommendations of various officials here regarding the reforms necessary to maintain economic stability. He also has demonstrated a willingness to leave behind the tactic of kicking and screaming for more attention that created mutual frustration.

Instead, he has offered his full cooperation in the wars against terrorism, drugs and corruption. He has expressed interest in making his country an attractive place for foreign investment and trade with a proposal to make Ecuador, among other things, a reliable regional source of oil.

This is definitely the kind of ally Washington is looking for and should be interested in maintaining. Yet supporting Gutiérrez will not be easy. After all, he heads a country that has had five presidents in the last six years and forcibly removed the last two it democratically elected.

Gutiérrez came to power with the help of Ecuador's politically potent Indian voters. Yet numerous analysts contend that his first month in office has exposed the weakness of that coalition. The Pachakutik indigenous movement has had an especially tough time accepting the economic reforms required to obtain IMF support, but Gutiérrez asserted that his political marriage with the movement would continue ``until death do us part.''

That, obviously, remains to be seen. Just as it remains to be seen whether Gutiérrez's gambit to ally himself so closely with Washington is worth the doubts and suspicions he has already raised in his country.

The Bush administration can help demonstrate to Ecuadorans that its interests go beyond a security alliance. By backing Gutiérrez's social agenda, including his fight against corruption and his crusade against poverty, Washington could prove itself to be a true ally.

In play, after all, is not only the future of Ecuador but also the need to ensure that the winds of change sweeping across the region will remain gentle and positive.

news.ft.com By Richard Lapper, Latin America Editor, in New York Published: February 16 2003 20:43 | Last Updated: February 16 2003 20:43

Ecuador will be a "staunch ally" of the US in its struggle against terrorism, drug trafficking and corruption, the country's radical new president told the Financial Times.

Lucio Gutiérrez, (pictured) a left-leaning former army officer who won last November's presidential elections after mobilising support from Ecuador's sizeable indigenous minority population, also promised fierce fiscal austerity and said he would lead efforts to clean up Ecuador's reputation among foreign investors.

"We are very interested in turning the page of errors and mistakes, of not fulfilling agreements, of finishing with this label of Ecuador being one of the most corrupt countries in the world," Mr Gutiérrez said last week during a visit to New York and Washington.

A critic of the US and globalisation in the past, Mr Gutiérrez has been compared to Hugo Chávez, Venezuela's iconoclastic populist leader. Like Mr Chávez, he led a military coup before winning elected office. But in his first few months in government he has proved to be a more pragmatic leader than his Venezuelan counterpart, who is embroiled in a deepening political and economic crisis.

During his visit Mr Gutiérrez met President George W. Bush and the International Monetary Fund, signing a letter of intent for a $200m loan that should unlock a further $300m in credits from the multilateral lending agencies.

He said Ecuadoreans had not been happy when their currency was replaced with the US dollar three years ago. But "dollarisation" was a "legacy" his government had inherited and it would press ahead with economic adjustment and seek to improve competitiveness by investments in education and technology.

The budget envisages a primary surplus (excluding debt interest payments) of 6.4 per cent of GDP, compared with 4 per cent in 2002.

Mr Gutiérrez said his supporters had agreed to back controversial increases in petrol prices and electricity rates. He also said there was broad-based support for a continued US military base in the port city of Manta that is an important part of US operations against drugs trade in the region.

Mr Gutiérrez said it was now important to show results in terms of jobs and investment.

"We have prepared the land. We have sown the seeds, but now we have to harvest. If we don't give people a response . . . we are going to have problems."

Analysts suggest that the absence of a firm congressional majority could prove to be a serious difficulty. According to Ecuador Focus, a Quito-based newsletter, "his political ambitions could soon face some harsh political realities."

Ecuador has agreed to refer a $200m tax dispute with Occidental Petroleum and other foreign oil companies to international arbitration, said Mr Gutiérrez.

The tax dispute arose when tax authorities unilaterally suspended rebates to international oil companies of value added tax in 2001.

www.washingtonpost.com By Marcela Sanchez Special to washingtonpost.com Friday, February 14, 2003; 11:27 AM

At a time when Washington's relations with other nations are fraught with tension, there is something endearing in hearing a foreign leader effusively proclaiming that he wants to become the best U.S. ally around.

Lucio Gutiérrez, the new Ecuadoran president, did just that during his trip to Washington this week. And, genuine or not, his gesture appeared to defuse any suspicions about his intentions.

This was no small feat, especially considering that Gutiérrez is the same former coup-plotting colonel who two years ago helped topple an elected president. Elected president himself in November in a tough campaign in which he ran as the populist candidate of the left, he has been described by some as part of a leftist force of ``evil'' taking over Latin America and is often likened to Venezuela's polarizing president, Hugo Chávez.

How can such a leader suddenly become Washington's best ally? Or more importantly for Gutiérrez, what future would such a president have when it is distrust and even hatred of Washington's dominance that propels outsiders like him into office?

In his defense, Gutiérrez says he is a victim of a ``satanized'' image. He argues rather that he is the embodiment of changing times in the region--not the radical changes and revolutions that years ago transplanted the Cold War to Latin American soil, or that have left modern-day Venezuela a broken nation.

Gutiérrez says there are ``fresh, gentle and positive'' winds of change pushing leaders to restore faith in the democratic system. It is not a matter of whether they come from the left or the right, but whether they will be able to address the growing needs of their people. Washington can choose to help, or turn its back. Right now it seems to be giving Gutiérrez the benefit of the doubt.

Washington generously opened its doors--and its wallet--to Gutiérrez, who has been in office barely a month. He is the first Ecuadoran head of state to pay an official visit to the White House in more than a decade. The International Monetary Fund formalized a $200 million loan agreement that his predecessor had been unable to obtain despite nearly a year of trying. And in the U.S. budget plan unveiled last week, President Bush requested $15 million in military assistance for Ecuador--15 times more than sought the year before.

Why such generosity? Possibly because in such a short period of time, Gutiérrez has said and done all the right things in the eyes of official Washington. He has sought and apparently taken to heart the recommendations of various officials here regarding the reforms necessary to maintain economic stability. He also has demonstrated a willingness to leave behind the tactic of kicking and screaming for more attention that created mutual frustration.

Instead, he has offered his full cooperation in the wars against terrorism, drugs and corruption. He has expressed interest in making his country an attractive place for foreign investment and trade with a proposal to make Ecuador, among other things, a reliable regional source of oil.

This is definitely the kind of ally Washington is looking for and should be interested in maintaining. Yet supporting Gutiérrez will not be easy. After all, he heads a country that has had five presidents in the last six years and forcibly removed the last two it democratically elected.

Gutiérrez came to power with the help of Ecuador's politically potent Indian voters. Yet numerous analysts contend that his first month in office has exposed the weakness of that coalition. The Pachakutik indigenous movement has had an especially tough time accepting the economic reforms required to obtain IMF support, but Gutiérrez asserted that his political marriage with the movement would continue ``until death do us part.''

That, obviously, remains to be seen. Just as it remains to be seen whether Gutiérrez's gambit to ally himself so closely with Washington is worth the doubts and suspicions he has already raised in his country.

The Bush administration can help demonstrate to Ecuadorans that its interests go beyond a security alliance. By backing Gutiérrez's social agenda, including his fight against corruption and his crusade against poverty, Washington could prove itself to be a true ally.

In play, after all, is not only the future of Ecuador but also the need to ensure that the winds of change sweeping across the region will remain gentle and positive.

washingtontimes.com By Tom Carter THE WASHINGTON TIMES

     Ecuador's new president, Lucio Gutierrez, who is frequently grouped with Latin America's growing cadre of populist left-wing leaders, said yesterday he aims to establish social justice without sacrificing the rights of businessmen and entrepreneurs.      "I am a radical in the struggle against corruption, social injustice, impunity and achieving the extradition of corrupt bankers and politicians who stole from our country," Mr. Gutierrez said at a breakfast meeting with editors and reporters at The Washington Times.      "We must use the things that are good from the left, but also take what is good from the right: the respect for private property, entrepreneurship and guarantees and the protection of capital."      Less than one month in office, Mr. Gutierrez came to Washington to meet President Bush and other top officials. He also came to reassure the U.S. business community that their interests are safe in Ecuador.      "We offer legal security, the rule of law, complete transparency in all state transactions. We are a country of immense potential in tourism, natural resources and human resources," he said.      He said that by helping his country to create employment, jobs and wealth, the Bush administration could also reduce illegal immigration into the United States.      "We are truly desirous, to the point of anxiety, to receive [U.S.] investments into our country," Mr. Gutierrez said.      Like Venezuela's President Hugo Chavez, Mr. Gutierrez is a former military officer who led what he called a "civil junta" to oust a corrupt civilian government. Both men spent time in jail and both emerged to win elections based on populist themes.      Mr. Gutierrez is also criticized for his friendship with Cuba's Fidel Castro and Brazil's Inacio Lula da Silva. But he seems to be winning over some who were initially skeptical.      "By and large, this is a gentleman who is genuinely interested in improving the well-being of his countrymen," said Stephen Johnson, Latin America analyst at the Heritage Foundation, after meeting Mr. Gutierrez on Monday. "He understands that you cannot generate wealth by taking out loans and giving handouts."      Ecuador has had six presidents in the last seven years. Jamil Mahuad was ousted in January 2002 when Mr. Gutierrez, then an army colonel, led marches of Ecuadorean Indians demanding a new government.      Elected in November with 54 percent of the vote, Mr. Gutierrez said he met and spoke with Mr. Chavez for the first time at his inauguration in January. He was also cautious regarding U.S. policy on Cuba, saying only that the people of Cuba should not be made to suffer for the policies of Mr. Castro.      But he was effusive about Brazil, thanking Mr. Lula da Silva for intervening on Ecuador's behalf with the International Monetary Fund. The IMF on Jan. 31 announced $300 million in loans and support for Mr. Gutierrez' administration, which inherited an $11 billion debt.      "The new Ecuadorean government has been very courageous in its first few days by quickly taking measures to address a difficult fiscal situation," the IMF said in announcing the loans.      Following meetings with Mr. Gutierrez, the IMF released another statement Monday saying Ecuador's economic reform program "should substantially strengthen the country's fiscal position, stabilize the economy, and lay the basis for sustaining healthy growth."      Mr. Gutierrez said he would talk to Attorney General John Ashcroft about the extradition under a 1948 treaty of Ecuadorean politicians and bankers now living comfortably in Miami. He said the government he helped overthrow looted approximately $3 billion from Ecuador's treasury.      "My main objective is to bring morality to Ecuador and to recover the money that was stolen by corrupt politicians and bankers," he said.