Ecuadorian government and protestors led by indigenous organizations on late Sunday reached a deal to cancel an International Monetary Fund (IMF) package, according to media reports.
A nationwide strike by transport workers and taxi drivers against the elimination of the subsidies by the government on Oct. 1 led to protests and violence.
The government announced the austerity package as part of an agreement with the IMF to obtain loans.
Under the deal, the government will revoke the IMF package that include a sharp rise in the price of gasoline and diesel fuel and protestors to clear of the streets, Venezuelan TV channel TeleSur reported.
Both parties will also set up a committee to develop a new plan, it added.
The talks were mediated by the United Nations in Ecuador and the Ecuadorean Episcopal Conference.
Moreno declared a two-month state of emergency on Oct. 3 and said his Cabinet is determined not to change the decision on “those perverse subsidies that were damaging the country.”
Moreno also on Saturday imposed curfew and militarization in the capital Quito amid violent protests.
Ecuador, a country straddling the equator on South America’s west coast, has seen numerous street protests in the past which forced the resignation of three presidents.
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