Summary
- The IMF executive board completed the fifth review under Ecuador’s 48-month Extended Fund Facility (EFF) arrangement, enabling an immediate disbursement of about USD 400 million.
- Economic growth continues to exceed expectations amid low inflation; labor market conditions are improving; and the current account continues to post sizable surpluses, supporting a sustained increase in international reserves to record-high levels.
- The authorities are making significant progress in the implementation of their economic reform plan. Ecuador has successfully regained access to international capital markets. The authorities adopted measures to address the fiscal underperformance of late 2025 and return to the program’s fiscal consolidation path, while creating space for priority social and investment spending.
- The authorities are also advancing their ambitious structural reform agenda to strengthen fiscal sustainability and boost private investment and job-rich growth, while protecting the most vulnerable.
WASHINGTON, USA – The executive board of the International Monetary Fund (IMF) completed April 22, the fifth review of Ecuador’s arrangement under the Extended Fund Facility (EFF). The board’s decision enables an immediate disbursement of SDR 280.5 million (US$394 million), bringing total disbursements under the arrangement to SDR 2.7 billion (about US$3.7 billion).
Ecuador’s 48-month EFF arrangement was approved by the executive board in May 2024 and augmented in July 2025, providing access equivalent to SDR 3.75 billion (about US$5 billion). The arrangement supports policies to strengthen fiscal and debt sustainability, protect vulnerable groups, rebuild liquidity buffers, safeguard macroeconomic and financial stability, and advance structural reforms to foster sustainable and inclusive growth.
Real GDP rebounded strongly in 2025 amid low inflation, labor market outcomes are improving, and ample liquidity in the financial system has supported stronger credit growth. The current account balance continues to record sizable surpluses, contributing to a sustained rise in international reserves to record-high levels. High global oil prices are expected to support the fiscal and external balances.
The authorities continue to make significant progress in implementing their economic reform plan supported by the EFF arrangement. Ecuador returned to international capital markets in January 2026 for the first time since 2019, with a bond issuance of USD 4 billion (including a debt buy-back operation of USD 3 billion). The authorities’ program has also helped catalyse financial support from multilateral and bilateral partners.
The authorities have enacted measures to streamline tax expenditures, strengthen revenue, and enhance public spending efficiency to address the fiscal underperformance of late 2025 and return to the program’s fiscal consolidation path, while increasing space for priority social and investment spending. All other program targets for the fifth review were met. Effective implementation of the fiscal consolidation plan and the reform agenda supported by the EFF arrangement is projected to keep public debt on a firm downward trajectory and maintain sustained access to international capital markets.
Continued progress on the reform agenda is expected to yield significant growth dividends over the medium term. The authorities met two structural benchmarks related to the mining sector’s fiscal regime and the Anti-Money Laundering/Combating the Financing of Terrorism framework. They also continue to advance the development of local credit and debt markets and the strengthening of financial supervision and resolution frameworks.
Following the executive board’s discussion Nigel Clarke, deputy managing director and acting chair, issued the following statement:
“The Ecuadorian authorities continue to demonstrate strong commitment to their economic program supported by the EFF arrangement. They have enacted measures to address the fiscal underperformance of late 2025 and return to the program’s fiscal path. All other program targets for the fifth review have been met. In addition, the authorities continued advancing their ambitious structural reform agenda.
“Real GDP rebounded strongly in 2025 amid low inflation, and is expected to grow by 2.5 percent in 2026, supported by domestic demand and buoyant nonoil exports. The current account balance continues posting large surpluses, supporting a steady build-up of international reserves to record-high levels.
“The authorities remain committed to strengthening the fiscal position and safeguarding fiscal sustainability. They have taken firm policy actions to streamline tax expenditures, strengthen fiscal revenue, and enhance public expenditure efficiency, while increasing space for priority social and investment spending. Ecuador has successfully regained access to international capital markets, and sovereign debt spreads have declined to their lowest levels since 2018.
“The authorities are strongly committed to strengthening the social safety net. They continue expanding the coverage of social protection for lower-income households, surpassing program targets, and have implemented effective measures to mitigate the impact of reforms on vulnerable groups.
“Efforts to advance the financial sector policy agenda and develop domestic capital markets continue. Financial supervision is being enhanced. The authorities are also committed to assessing and closing gaps in the resolution framework, strengthening financial system oversight and regulation, and enhancing the interest rate system to improve credit allocation and growth.
“Structural reforms to boost competitiveness and create jobs remain a key focus. The authorities are working to attract private investment into high-potential sectors, including mining, hydrocarbons, and energy. They are strengthening energy resilience by increasing electricity supply and enhancing preparedness to natural disasters. They are also working to enhance governance and the AML/CFT framework. Decisive implementation of the economic reform agenda would help unlock significant growth dividends over the medium term and reinforce macroeconomic resilience for the benefit of all Ecuadorians.”