USA / ECUADOR – The International Monetary Fund (IMF) staff and the Ecuadorian authorities have reached a staff-level agreement on the first review of Ecuador’s economic reform program supported by the 48-month Extended Fund Facility (EFF) arrangement. Subject to approval by the IMF executive board, Ecuador would have access to about US$500 million (SDR 375.9 million).
- Program performance has been strong. The authorities met all end-of-August 2024 quantitative performance criteria and indicative targets for the first review. They have also made substantial progress on the implementation of their ambitious structural reform agenda supported by the program.
- The authorities’ strong and decisive efforts have helped safeguard macroeconomic stability, strengthen fiscal sustainability, and protect vulnerable population groups.
Upon the conclusion of the discussions, Varapat Chensavasdijai, the IMF’s mission chief for Ecuador, issued the following statement:
“We are pleased to announce that IMF staff have reached staff-level agreement with the Ecuadorian authorities on the first review under the 48-month EFF arrangement. The arrangement was approved by the Executive Board on May 31, 2024, for a total amount of SDR 3 billion (about US$4 billion and 430 percent of quota).
“Amid a challenging macroeconomic environment and renewed pressures from the electricity crisis caused by a historic drought, our objective remains to support the authorities’ efforts to enhance the living standards of all Ecuadorians, with a focus on protecting the most vulnerable, safeguarding macroeconomic stability, and promoting sustainable and inclusive growth.
“The authorities have made significant progress in implementing their economic reform plan supported by the EFF arrangement. All end-August 2024 quantitative performance criteria and indicative targets for the first review of the EFF arrangement have been met, and implementation of structural reforms is progressing well. IMF staff welcomes the decisive policy steps and reforms undertaken by the authorities, which have strengthened the fiscal and external positions and catalyzed access to financing. The authorities have also made strong efforts to manage the cost of the electricity crisis within the existing fiscal envelope. The authorities’ policy actions and reforms are helping to safeguard dollarization, enhance macroeconomic and financial stability, strengthen fiscal sustainability, and protect vulnerable groups, and are expected to foster a stronger and more inclusive economy.”
