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Ecuador dollarization reforms go to Congress

QUITO, Ecuador, Mar 14 (Reuters) - Ecuador's government Tuesday presented Congress 13 articles modifying the law put into effect a day earlier that adopts the dollar as the nation's currency.

Among the articles there were none pertaining to fixing interest rates, or to the debt restructuring that had been requested by the International Monetary Fund.

The passage of the reforms to Congress came hours after the IMF said it would release the first tranche of a $2 billion rescue package if Ecuador modified aspects of the dollarization package.

The principal points of the pending reforms specify the Central Bank will have one year to swap 80 percent of the sucre currency in circulation for dollars, with the rest used for pocket change.

According to the plan, total legal recourse is given to the Deposit Guarantee Agency to collect loans given to private banks in trouble. The period banks have to capitalize themselves is extended to three years from one within the changes.

Dollarization is a key tool being used by the administration of President Gustavo Noboa to drag the small Andean nation of 12.4 million people out of an economic slide marked by 17 percent unemployment and 62.5 percent poverty.