IMF staff and Ecuadorian authorities have reached a staff-level agreement on the first review of Ecuador's Extended Fund Facility (EFF) arrangement. The EFF, approved by the IMF Executive Board on May 31, 2024, amounts to SDR 3 billion, equivalent to approximately US$4 billion and 430 percent of Ecuador's quota.
Varapat Chensavasdijai, the IMF’s mission chief for Ecuador, stated: "We are pleased to announce that IMF staff have reached staff-level agreement with the Ecuadorian authorities on the first review under the 48-month EFF arrangement."
The agreement comes amid challenging economic conditions exacerbated by an electricity crisis due to a historic drought. Chensavasdijai noted that the objective remains "to support the authorities’ efforts to enhance the living standards of all Ecuadorians," with an emphasis on protecting vulnerable populations and promoting sustainable growth.
Ecuador has reportedly made significant progress in implementing its economic reform plan supported by the EFF. All performance criteria and targets for August 2024 were met, with structural reforms advancing well. The IMF commended Ecuador's policy steps which have strengthened fiscal positions and facilitated access to financing.
Chensavasdijai acknowledged: "The authorities’ policy actions and reforms are helping to safeguard dollarization, enhance macroeconomic and financial stability, strengthen fiscal sustainability, and protect vulnerable groups."
The statement concluded with gratitude from the IMF team for "the excellent collaboration and constructive discussions" with Ecuadorian authorities.