Press Release No. 19/449

IMF Reaches Staff-Level Agreement on the Second and Third Review of Ecuador’s Economic Program under the Extended Fund Facility

December 10, 2019

IMF staff and the Ecuadorian authorities reached a staff level agreement on the combined second and third reviews of the economic program supported by a three-year Extended Fund Facility (EFF) arrangement. Discussions took place in Quito during August 12–26, 2019 and in Washington, D.C. during November 11–15, 2019.

Ms. Anna Ivanova issued the following statement in Washington, D.C. today:

“IMF staff and the Ecuadorian authorities reached a staff level agreement on the combined second and third reviews of the economic program supported by a three-year Extended Fund Facility (EFF) arrangement. Subject to the approval of the Executive Board, Ecuador would have access to about US$498 million (SDR 361.3 million). The Executive Board’s review is expected to take place on December 19.

“We commend the authorities’ strong commitment to implement policies aimed at strengthening the Ecuadorian economy and laying the groundwork for robust and sustainable growth, while protecting the most vulnerable.

“We welcome the approval of the tax reform by the National Assembly, which will make the tax system more efficient, simple, and growth-friendly and improve Ecuador’s fiscal position.

“The authorities remain strongly committed to improving social protection for the vulnerable people. Progress has already been made in strengthening the social safety net and expanding the coverage of beneficiaries.

“IMF staff would like to thank the authorities and the technical team for their candid and constructive discussions.”