Ecuador: Second Review under the Extended Arrangement under the Extended Fund Facility, Request for Augmentation and Rephasing of Availability Date for the Third Review, and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for Ecuador
IMF Staff Country Reports, July 21, 2025
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- Ecuador: Second Review under the Extended Arrangement under the Extended Fund Facility, Request for Augmentation and Rephasing of Availability Date for the Third Review, and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for Ecuador
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Bibliographic details
- Published: July 21, 2025
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798229016568.002
Program implementation and progress
- The Ecuadorian authorities made significant progress in the implementation of their economic program supported by the 48-month Extended Fund Facility (EFF) arrangement.
- The original EFF arrangement was approved by the Executive Board in May 2024 of SDR 3 billion (430 percent of quota, about US$4 billion).
External environment and rationale for augmentation
- The global landscape presents additional challenges for Ecuador due to volatile oil prices and tighter global financing conditions.
- Amid this more challenging external environment, the authorities requested an augmentation of the original arrangement from US$4 billion to US$5 billion.
- The augmentation request is intended to address external shocks and strengthen fiscal sustainability and buffers.
Policy commitments and reform agenda
- The authorities affirmed their commitment to implement an ambitious reform agenda to:
- Address external shocks.
- Further strengthen fiscal sustainability and buffers.
- Boost private investment and job-rich growth.
- The revised program is intended to catalyze additional financial support from multilateral partners to advance the structural reform agenda.
Financial and program implications
- The augmented arrangement aims to provide greater resources to manage volatile oil revenues and tighter global financing.
- The revised program is expected to:
- Strengthen fiscal buffers.
- Improve the prospects for private investment and employment generation.
- Mobilize additional multilateral financing to support structural reforms.
Content in this bundle
- 1ecuea2025001