BUSINESS

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Services

The largest service sector in Ecuador is commerce, which grew at over 10% in 2000 despite the economic crisis. The transportation services sector has also grown at a similar rate, and while the service has not improved much, the cost of gas, automobile parts and repair services has grown substantially, therefore increasing the fares that passengers pay. Current local bus fares vary from city to city but are usually between USD 25 -35 cents.

The financial services sector endured a severe crisis in 1999 that lead to the freezing of all assets held in financial institutions to avoid a total collapse of the banking system. The freezing of personal assets was a disaster for the general public and for companies, many of which unable to pay even their employees payrolls, had to shut down. An audit of all financial institutions was carried out by the government, and resulted in the closing of over 30 banks, of the 42 that existed. Currently the largest banks are publicly owned, and the government is in the process of preparing these for their ultimate sale to interested foreign financial institutions. Only 30% of all frozen assets have been returned to their owners.