MercoPress. South Atlantic News Agency

Ecuador reaches an agreement with IMF and will receive US$ 4.2 billion

Ecuadorian authorities have put together a strong plan, which will help modernize the economy and foster job creation

Ecuador and the International Monetary Fund (IMF) staff have reached an agreement on a set of policies to underpin a US$4.2 billion (435% of quota and SDR3.035 billion) arrangement under the IMF’s Extended Fund Facility (EFF). This arrangement, which is subject to IMF Executive Board approval, would provide support for the Ecuadorian government’s economic policies over the next three years.

Ms. Anna Ivanova, the IMF’s mission chief for Ecuador, stated the following at the conclusion of the staff-level discussions with the authorities in Quito:

“I am pleased to announce that the IMF staff and the Ecuadorian authorities have reached an agreement in support of Ecuador’s economic policy plan. Our objective has been and remains to support the authorities’ efforts to improve the living standards of all Ecuadorians. This arrangement is part of a broader effort of the international community that includes financial support of almost US$6 billion over the next three years from the Development Bank of Latin America (CAF), the Inter-American Development Bank (IDB), the Latin American Reserve Fund (FLAR), and the World Bank.

“The government’s plan is aimed at creating a more dynamic, sustainable, and inclusive economy and is based on four key tenets; to boost competitiveness and job creation; to protect the poor and most vulnerable; to strengthen fiscal sustainability and the institutional foundations of Ecuador’s dollarization; and to improve transparency and strengthen the fight against corruption.

“The authorities have put together a strong plan, which will help modernize the economy and foster job creation. Importantly, the authorities’ plan pays close attention to protecting the most vulnerable. The Fund is committed to continue to support the Ecuadorian government in their efforts.”

The staff-level agreement, is expected to be brought to the IMF Executive Board for consideration in the coming weeks.