## Ecuador: Second and Third Reviews Under The Extended Fund Facility Arrangement and Request for a Waiver of Nonobservance and Modifications of Performance Criteria — Press Release and Staff Report

_IMF Staff Country Reports, December 20, 2019_

## Source details

**Canonical URL:** [Ecuador: Second and Third Reviews Under The Extended Fund Facility Arrangement and Request for a Waiver of Nonobservance and Modifications of Performance Criteria — Press Release and Staff Report](https://www.imf.org/en/publications/cr/issues/2019/12/20/ecuador-second-and-third-reviews-under-the-extended-fund-facility-arrangement-and-request-48898)

## Other formats

- [Markdown version](/en/publications/cr/issues/2019/12/20/ecuador-second-and-third-reviews-under-the-extended-fund-facility-arrangement-and-request-48898/index.md)
- [Structured JSON version](/en/publications/cr/issues/2019/12/20/ecuador-second-and-third-reviews-under-the-extended-fund-facility-arrangement-and-request-48898/index.json)
- [Bundle manifest](/en/publications/cr/issues/2019/12/20/ecuador-second-and-third-reviews-under-the-extended-fund-facility-arrangement-and-request-48898/bundle-manifest.json)

## Bibliographic details
- Published: December 20, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513523859.002

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### Summary findings
- The Ecuadorian authorities have continued to make progress in strengthening the country’s fiscal and external positions.
- The authorities have appropriately recalibrated their economic program to include a more moderate fiscal consolidation and international reserves’ paths in response to recent developments and to protect pro-poor growth and social spending.
- Public financial management reforms are paramount to secure fiscal sustainability in the longer term.
- Reform of the central bank aimed at strengthening central bank autonomy, accountability, and governance will be instrumental in:
  - supporting the dollarization regime,
  - boosting reserves,
  - ensuring their prudent management.
- Efforts to raise competitiveness should continue to focus on:
  - improving transparency,
  - strengthening governance,
  - increasing efficiency of the public sector,
  - creating conditions in the labor market to facilitate hiring and female participation.

### Policy recommendations and program adjustments
- Recalibrate fiscal consolidation to be more moderate to protect pro-poor growth and social spending.
- Pursue public financial management reforms to secure long-term fiscal sustainability.
- Advance central bank reform to strengthen autonomy, accountability, and governance to support the dollarization regime and prudent reserve management.
- Continue structural reforms to raise competitiveness through transparency, governance, public-sector efficiency, and labor-market measures to facilitate hiring and female participation.

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## Content in this bundle

- **Executive Summary**
  - [Executive Summary (Markdown version)](/-/media/files/publications/cr/2019/1ecuea2019005.pdf.md){rel="alternate" type="text/markdown"}
  - [Executive Summary (PDF)](/-/media/files/publications/cr/2019/1ecuea2019005.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2019/12/20/ecuador-second-and-third-reviews-under-the-extended-fund-facility-arrangement-and-request-48898_