Ecuador: Request for an Extended Arrangement Under the Extended Fund Facility-Press Release; Staff Report; and Statement by the Executive Director for Ecuador

IMF Staff Country Reports, May 31, 2024

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Canonical URL: Ecuador: Request for an Extended Arrangement Under the Extended Fund Facility-Press Release; Staff Report; and Statement by the Executive Director for Ecuador

Authorities requested a 48-month EFF arrangement of SDR 3 billion.
The request follows swift and bold measures implemented in early 2024 to address fiscal and liquidity challenges.
IMF estimates that IMF resources are needed to close a financing gap of about US$4 billion during the program period, after factoring in:
- an ambitious and large fiscal plan,
- financial support from international financial institutions and official bilateral partners,
- renewed access to international capital markets.

The baseline scenario under the program is subject to substantive risks, stemming from both external and domestic factors.
IMF assesses that the policy program provides a reasonably strong prospect of success.
The assessment notes broad support for the main objectives of the EFF arrangement and strong commitment and capacity by the authorities to take measures to ensure successful implementation.

The paper highlights an ambitious structural reform agenda to be advanced under the program.
Subject areas covered include:
- Anti-money laundering and combating the financing of terrorism (AML/CFT),
- Crime,
- Financial regulation and supervision,
- International organization,
- Monetary policy,
- Public debt,
- Revenue administration.