Ecuador and IMF Reach Staff-Level Agreement on a US$4.2 Billion Extended Fund Facility

IMF News, February 21, 2019

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IMF staff and the Ecuadorian authorities reached agreement on a set of policies to underpin a US$4.2 billion arrangement under the IMF’s Extended Fund Facility (EFF).
The arrangement is subject to IMF Executive Board approval.
The arrangement would provide support for the Ecuadorian government’s economic policies over the next three years.
Press Release No. 19/52

IMF EFF: US$4.2 billion (435 percent of quota and SDR3.035 billion).
Part of a broader international support package of almost US$6 billion over the next three years from:
- Development Bank of Latin America (CAF)
- Inter-American Development Bank (IDB)
- Latin American Reserve Fund (FLAR)
- World Bank

The government’s plan aims to create 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;
- to improve transparency and strengthen the fight against corruption.
The staff-level agreement is intended to support the authorities’ efforts to improve living standards and to modernize the economy while paying close attention to protecting the most vulnerable.

Ms. Anna Ivanova, the IMF’s mission chief for Ecuador, stated at the conclusion of staff-level discussions 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.

IMF press release: Ecuador and IMF Reach Staff-Level Agreement on a US$4.2 Billion Extended Fund Facility