Ecuador declares state of emergency amid economic protests

Earlier, the National Indian Federation did not attend a meeting with President Gustavo Naboa's government on settling the dispute and did not give a reason for not coming.

Despite the state of emergency - which will go on indefinitely and repeals certain rights and constitutionally guaranteed freedoms - Indian leader Antonio Vargas said demonstrators on Saturday would erect more street blockades and occupy more cities.

The Indians have demanded the repeal of price increases ordered in December for gas, petrol and transportation - hikes the government has said are non-negotiable because they are needed to cut the national budget deficit. The protesters also want the government to freeze all prices for five years, break off negotiations with the International Monetary Fund and rescind last year's decision to replace the national currency, the sucre, with the U.S. dollar.

Indian protests a year ago forced out Noboa's predecessor, president Jamil Mahuad, and then-vice president Naboa was sworn in the same night. Then, the Indians, who also included Vargas, were joined by a group of young military officers. Ecuador's economic situation did not improve with the change in government, however. The sucre dove in value, and the dollar was adopted as Ecuador's currency. But the use of a foreign currency that the government does not issue has forced it to enact strict budget discipline.

(klei/dpa)