IMF, Ecuador reach staff-level agreement on economic reform review

The International Monetary Fund (IMF) reached on Monday a staff-level agreement with Ecuador on the first review of the country’s 48-month Extended Fund Facility (EFF) arrangement. Pending IMF Executive Board approval, Ecuador will access approximately $500 million.

The IMF highlighted Ecuador’s strong performance, meeting all quantitative criteria and targets for August 2024, and noted substantial progress on structural reforms aimed at safeguarding dollarisation, enhancing fiscal sustainability, and protecting vulnerable populations.

Ecuador’s efforts to manage the economic impact of a historic electricity crisis within fiscal constraints were commended, with reforms expected to bolster macroeconomic stability and foster inclusive growth. The $4 billion EFF, approved in May 2024, supports Ecuador’s broader reform agenda.

Attribution: IMF