Suddenly, one Monday in March 1999, all Ecuadorian people were astonished when the Government declared a "banking holiday". The before mentioned "holiday" lasted a whole week. Clients were not only unable to draw out their money but also were obliged to keep their deposits for a year. It sounds incredible but it occurred.
During 1998, under a strong financial crisis, in Ecuador was enacted the creation of the Agency to Guarantee Deposits (AGD). More than twenty banks went into bankruptcy. More than the half of the system was sick. Finally, we find an Ecuadorian State controlling more than 75% of the banking sector. The important decision to eliminate AGD was made on July 2001. After a period of negative results achieved by AGD. Now, the Central Bank will execute AGD goals.
