Statement by IMF Managing Director Kristalina Georgieva on Ecuador
IMF News, March 24, 2020
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- Statement by IMF Managing Director Kristalina Georgieva on Ecuador
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Bibliographic details
- Published: March 24, 2020
Context and timing
- Press Release No. 20/100
- March 23, 2020
- Ms. Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF) issued the following statement.
Key findings and situation assessment
- Ecuador’s economic challenges have been compounded by the devastating effects of the COVID-19 outbreak and the sharp fall in world oil prices.
- Ecuador is facing severe financing constraints and will require the support of all its stakeholders.
- The President Lenin Moreno and his government have responded quickly and decisively to help protect Ecuadorians from the impact of these rapidly evolving global developments, by putting in place a series of measures to stabilize the economy and prevent the further spread of the virus.
Immediate IMF response and instruments
- The Government of Ecuador expressed its intention to seek our financial support through the Fund’s Rapid Financing Instrument (RFI).
- The RFI is described as an emergency financial tool that will allow the government to address urgent balance of payments needs and will support policies that would make it possible to direct funds swiftly to Ecuador’s most affected sectors, including the healthcare system and social protection, to bolster its response to COVID-19.
- Our team is working expeditiously to respond to this request so that a proposal can be considered by the IMF’s Executive Board.
Medium-term engagement and policy focus
- In parallel, my staff is immediately engaging with the authorities on a successor Fund-supported arrangement that builds on the current Extended Fund Facility (EFF).
- Objectives for the successor arrangement include:
- bolster Ecuador’s economic performance,
- strengthen the foundations of dollarization,
- deliver broad based benefits for all Ecuadorians, especially the most vulnerable part of the population.
Policy emphasis
- Provide immediate support to help Ecuador address the effects of a mounting global health crisis.
- Continue to support the authorities’ unwavering commitment to implement much-needed economic and structural reforms aimed at fostering strong, sustainable and inclusive growth.
Statement by IMF Managing Director Kristalina Georgieva on Ecuador, March 23, 2020.