Unions hold general nationwide strike, and the government increases fuel prices 174 percent and freezes 50 percent of bank deposits. Mahuad's popularity falls to 16 percent on his first anniversary in power from a high of 66 percent. Ecuador declares a partial Brady bond default, history's first, and will pay only the interest due on its debt at month's end. Ecuador extends debt moratorium to cover its entire Brady debt programme, Eurobonds and external public debt. Unions, businesses and opposition politicians call for Mahuad's resignation.
Armed forces pledge to maintain constitutional order.
Ecuador ends 1999 with inflation at 61 percent and the sucre down 197 percent against the dollar. Workers, teachers, students and rural labourers hold a nationwide protest to demand Mahuad's resignation. A private poll reports 91 percent of Ecuadoreans disapprove of Mahuad's handling of national affairs and 53 percent want him to step down. Mahuad announces he will require the use of U.S. dollars for all transactions. The rate will be 25,000 sucres to the dollar.