Ecuador: Ex-Post Evaluation of Exceptional Access under the 2020 Extended Fund Facility-Press Release; Staff Report; and Statement by the Executive Director for Ecuador

IMF Staff Country Reports, December 4, 2023

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Ecuador: Ex-Post Evaluation of Exceptional Access under the 2020 Extended Fund Facility-Press Release; Staff Report; and Statement by the Executive Director for Ecuador

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Bibliographic details

• Published: December 4, 2023
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9798400260223.002

Main findings

• The EFF program achieved its primary objective of restoring macroeconomic stability against the backdrop of a historic economic downturn.
• Most of the program conditionality was eventually implemented, despite some delays to fiscal and structural reforms.
• The authorities strengthened fiscal buffers, taking advantage of higher oil prices.
• Fiscal structural reforms comprehensively revamped Ecuador’s fiscal framework, although their successful implementation will hinge on building and retaining institutional capacity.
• Extensive technical assistance provided to the authorities has helped to strengthen capacity in critical areas, especially fiscal accounting.
• Ultimately, reform efforts will need to be reinvigorated to ensure fiscal sustainability and restore market access.
• The EPE finds that Fund policies and procedures for financing under exceptional access were followed.

Policy implications and recommendations

• Reinvigorate fiscal and structural reform implementation to secure fiscal sustainability.
• Build and retain institutional capacity to ensure successful long-term implementation of fiscal structural reforms.
• Continue and possibly expand technical assistance, with emphasis on fiscal accounting and other critical capacity areas.
• Leverage commodity price upswings (notably oil prices) to strengthen buffers while consolidating reforms to restore market access.

Subject areas and keywords

• Subject: Energy subsidies, Expenditure, Fiscal consolidation, Fiscal policy, International organization, Monetary policy, Oil prices, Prices, Public debt
• Keywords: dollarization regime, EFF approval, EFF arrangement, EFF program, Energy subsidies, Fiscal consolidation, fund policy, Global, Oil prices

Content in this bundle

• APPENDIX II: Press Release
  • APPENDIX II: Press Release (Markdown version)
  • APPENDIX II: Press Release (PDF)