The International Monetary Fund (IMF) has reached a staff-level agreement with Ecuador on the Third Review of the country’s 48-month Extended Fund Facility (EFF) Arrangement. Discussions took place between September 17 and October 8, 2025, in Washington, DC, led by Patrizia Tumbarello from the IMF.
Patrizia Tumbarello stated, “We are pleased to announce that IMF staff have reached Staff-Level Agreement with the Ecuadorian authorities on the Third Review under the EFF Arrangement. In July, the IMF Executive Board approved an augmentation of the program of about US$1 billion (SDR 750.4 million), raising total access under the program from about US$4 billion to about US$5 billion. The authorities’ program will also catalyze additional financial support from multilateral partners. Subject to confirmation of international partners’ financial commitments and approval of this Review by the IMF Executive Board, Ecuador would have immediate access to about US$600 million (SDR 438.4 million).”
According to Tumbarello, Ecuador’s economy is recovering more quickly than anticipated due to increased domestic demand and record nonoil exports. The country’s current account balance continues to show significant surpluses, which has helped build up international reserves. Despite these positive developments, challenges remain due to global policy uncertainty and fluctuations in international financial markets.
Tumbarello added, “Real GDP is recovering faster than expected, driven by stronger domestic demand and record nonoil exports. The current account balance continues recording sizable surpluses, supporting a further increase in international reserve buffers. The economy has shown resilience but is still subject to several challenges, including acute global policy uncertainty and volatility in international financial markets. The authorities’ decisive policy actions and steadfast commitment to their economic program helps mitigate risks.”
She also noted progress on economic reforms: “The authorities continue to make significant progress in implementing their economic reform plan supported by the EFF arrangement. All quantitative performance criteria for end-August 2025 were met, some with significant margins. The authorities have taken important actions to strengthen fiscal sustainability and liquidity buffers, while protecting the most vulnerable. In addition, the authorities are advancing their ambitious structural reform agenda to safeguard financial stability, enhance governance, and boost private investment and job-rich growth.”
The reforms aim at enhancing macroeconomic stability and maintaining dollarization while ensuring fiscal sustainability and support for vulnerable groups.
“The authorities’ policy actions and reforms are helping to enhance macroeconomic and financial stability, safeguard dollarization, strengthen fiscal sustainability, protect vulnerable groups, and support stronger and more inclusive growth,” Tumbarello said.
She concluded by thanking Ecuadorian officials: “The IMF staff wishes to express its gratitude to the Ecuadorian authorities for the constructive and frank discussions during this Review.”