IMF Reaches Staff-Level Agreement with Ecuador on a New 48-Month Extended Fund Facility Arrangement

IMF News, April 25, 2024

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Canonical URL: IMF Reaches Staff-Level Agreement with Ecuador on a New 48-Month Extended Fund Facility Arrangement

IMF staff and the Ecuadorian authorities have reached a staff-level agreement on a program of economic policies and structural reforms.
The program is supported by a 48-month arrangement under the Extended Fund Facility (EFF).
The arrangement is in the amount of SDR 3 billion (about US$4 billion and 430 percent of quota).
The arrangement is subject to IMF Management and Executive Board approval.

Purpose: provide support for Ecuador’s economic policies over the next four years.
Policy focus areas:
- Strengthen fiscal sustainability.
- Safeguard macroeconomic stability.
- Foster strong and inclusive growth.
- Protect the most vulnerable.
Context: described as occurring “amid a challenging macroeconomic outlook.”

Mission chief Varapat Chensavasdijai issued the concluding statement:
- “I am pleased to announce that IMF staff and the Ecuadorian authorities have reached an agreement in support of Ecuador’s economic policy plan. Amid a challenging macroeconomic outlook, our objective has been and remains to support the authorities’ efforts to improve the living standards of all Ecuadorians, with a focus on protecting the most vulnerable and promoting sustainable growth.
- “The IMF staff welcomes the reform efforts taken by the authorities to help strengthen fiscal sustainability, safeguard macroeconomic stability, and foster a stronger and more inclusive economy. The authorities have put together a robust plan and have started to take important policy steps to address the liquidity and fiscal situation.”
- “The staff team would like to thank the authorities for the productive collaboration and constructive and candid policy dialogue.”

End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country or a virtual staff visit.
“The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF's Executive Board for discussion and decision.”

Source: IMF press release, April 25, 2024.