QUITO, Ecuador -- (AP) -- President Jamil Mahuad announced a tax hike and
             other harsh economic measures Thursday in this small Andean country's latest
             attempt to address its worst financial crisis in decades.

             In a nationwide television address, Mahuad also said he was partially freeze
             checking and savings accounts. He announced plans to jail tax evaders and
             eliminate sales tax exemptions except on food and medicine.

             Mahuad defended himself against criticism that he had acted too slowly during his
             first seven months in office, failing to take prompt action against the country's
             deepening financial crisis.

             He said he was a man of consensus who had sought the support of Congress and
             that had given the mistaken impression of ``a government without leadership.''

             Mahuad said his plan covered four main points: fiscal reforms, banking reforms,
             restructuring of the state and increased support for Ecuador's poor.

             The announcement came as a two-day nationwide strike to protest the
             government's economic programs wound down and just hours after the Central
             Bank's board of directors, including President Luis Jacome, resigned.

             Mahuad decreed a 60-day state of emergency Tuesday to offset the double
             impact of the strike and financial crisis, and ordered machine gun-toting police to
             guard oil and electricity installations from strikers.

             Mahuad detailed the following points of his plan:

               Restrict withdrawals from checking accounts for one year, with interest to be
             paid monthly on the embargoed accounts.

               An increase in the sales tax from 10 percent to 15 percent.

               Increase the price of a gallon of gasoline from $1 to $1.90.

               Create a new 4 percent tax on luxury cars.

               Legislation to permit imprisonment of tax evaders.

             Mahuad said the increase in gasoline prices was an emergency measure until
             Congress approves the increase in the sales tax. He said gasoline prices will be
             gradually reduced after the sales tax increase goes into effect. Ecuador's banks
             remained closed for a fourth straight day after Mahuad ordered an emergency
             bank holiday to prevent mass withdrawals amid fears the financial system was
             nearing collapse.
 

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