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%.[clarification needed][1] Per-capita income in US dollar terms plummeted by 32% during the year.[1]Unemployment increased from 9% to 17% and underemployment increased from 49% to 55%.[1] 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.[1] The money supply increased at an annual rate of 170% to pay back depositors of failed banks.[1] In March 1999, the government froze bank deposits to avoid hyperinflation.[1] By the end of 1999, President Mahuad's approval rating had dropped to 9%.[1] Unresolved economic, financial and political problems led to massive protests that resulted in his departure from office on January 22, 2000.[1]
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