Washington, DC: An International Monetary Fund (IMF) team led by Patrizia Tumbarello held discussions with the Ecuadorian authorities in Quito during February 26–March 6, 2026 and in Washington, DC during March 16-27 on the Fifth Review of the country’s 48-month Extended Fund Facility (EFF) Arrangement.
Upon the conclusion of the discussions, Ms. Tumbarello issued the following statement:
“We are pleased to announce that IMF staff have reached staff-level agreement with the Ecuadorian authorities on the Fifth Review under the EFF arrangement, with IMF Executive Board consideration expected in the coming weeks. Subject to approval of this Review by the Board and confirmation of international partners’ financial commitments, Ecuador would have immediate access to about US$394 million (SDR 280.5 million). The authorities’ program has also catalyzed additional financial support from multilateral partners.
“Real GDP rebounded strongly in 2025, driven by a recovery in domestic demand and buoyant nonoil exports. Liquidity in the financial system continues to facilitate credit growth. The current account balance continues recording sizable surpluses, enabling a steady improvement in international reserve buffers to a historic high. The recent rise in global oil prices is expected to further improve the fiscal and external positions amid an uncertain and challenging external environment.
“The authorities continue to make significant progress in implementing their economic reform plan supported by the EFF arrangement and remain strongly committed to the objectives and policies of the program. They have enacted measures to streamline tax expenditures, strengthen fiscal revenue, and enhance public expenditure efficiency to correct the fiscal underperformance of late 2025 and return to the program’s fiscal consolidation path, while increasing space for priority social and investment spending. In addition, all other program targets remain in line with the program and two key structural benchmarks on the mining sector’s fiscal regime and the Anti-Money Laundering/Combating the Financing of Terrorism framework have been met.
“Ecuador successfully returned to international capital markets in January 2026 (a key objective of the EFF-supported program) for the first time since 2019, with a bond issuance of US$4 billion (including a debt buy-back operation of US$3 billion). Accordingly, government deposits have improved, helping mitigate financing and liquidity risks. In addition, the authorities continue advancing their ambitious structural reform agenda to safeguard financial stability, enhance governance, and boost private investment and job-rich growth.
“The authorities’ policy actions and reforms are helping to enhance macroeconomic and financial stability, safeguard dollarization, strengthen fiscal sustainability, protect vulnerable groups, and promote stronger and more inclusive economic growth.
“The IMF staff wishes to express its gratitude to the Ecuadorian authorities and stakeholders for the constructive and open discussions during this Review process.”
