Ecuador: Request for Purchase under the Rapid Financing Instrument and Cancellation of Arrangement under the Extended Fund Facility — Press Release; Staff Report; and Statement by the Executive Director for Ecuador

IMF Staff Country Reports, May 28, 2020

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Canonical URL: Ecuador: Request for Purchase under the Rapid Financing Instrument and Cancellation of Arrangement under the Extended Fund Facility — Press Release; Staff Report; and Statement by the Executive Director for Ecuador

Presents Ecuador’s Request for Purchase Under the Rapid Financing Instrument (RFI) and Cancellation of Arrangement Under the Extended Fund Facility (EFF).
Ecuador faces urgent and immediate balance of payment (BOP) needs driven by:
- the sharp propagation of the coronavirus disease 2019 outbreak—Ecuador is one of the hardest hit countries in Latin America;
- a plummeting of oil prices;
- a dramatic collapse of global demand.
The RFI aims to help Ecuador finance health and social assistance spending and to catalyze financing from other multilateral financial institutions.
Additional support from other external partners will be required and critical to close the remaining financing gap and ease budget constraints.

Authorities have taken significant measures to contain the spread of the virus and mitigate the socio-economic impact, including:
- closing of schools and universities;
- closing public spaces and noncritical commercial activities;
- halting public transport;
- imposing a nationwide curfew.

The RFI will:
- finance much-needed health and social assistance spending;
- catalyze financing from other multilateral financial institutions.

Subject: Central banks, Commodities, COVID-19, Fiscal policy, Fiscal stance, Health, International reserves, Oil, Oil prices, Prices, Public debt
Keywords: authority, COVID-19, CR, Ecuador's request, EFF program, financing constraint, Fiscal stance, Global, International reserves, ISCR, Oil, Oil prices, RFI resource, short-term outlook