1998–99 Ecuador banking crisis

The 1998–99 Ecuador banking crisis resulted in about 70% of the country's financial institutions closing. In 1999, economic activity decreased by 7–8% and the currency depreciated by 195%. Per-capita income in US dollar terms plummeted by 32% during the year. Unemployment increased from 9% to 17% and underemployment increased from 49% to 55%. 1.6 billion dollars of Government of Ecuador funds were used to bail out banks that failed as a result of corrupt practices and mismanagement. The money supply increased at an annual rate of 170% to pay back depositors of failed banks. In March 1999, the government froze bank deposits to avoid hyperinflation. By the end of 1999, President Mahuad's approval rating had dropped to 9%. Unresolved economic, financial and political problems led to massive protests that resulted in his departure from office on January 22, 2000.