Daily Management Review

IMF allocates Ecuador $ 500 mln more to support reforms


The IMF Executive Board approved allotment of $ 498.4 million to Ecuador. The final tranche of the reform support program was agreed for 2019 after revision of the government’s economic plan was conducted.

Yamil Salinas Martínez via flickr
Yamil Salinas Martínez via flickr
"The findings of the two audits allow the authorities to get the equivalent of SDR 361.3 million (approximately $ 498.4 million)," a statement on the IMF website reads.

According to the Ecuadorian Ministry of Economy and Finance, this is the final of the tranches under the $ 1.4 billion approved for 2019 to support the government’s economic program.

In order to gain the approval of the IMF management, the Ecuadorian government had to amend the economic “Prosperity Plan”, which focuses on social protection and assistance to the poorest people agreed on December 10 through technical groups.

Earlier, the IMF announced that it would continue to work with Ecuador, despite the difficulties with the implementation of the planned reforms, such as liberalization of prices and the removal of fuel subsidies, which cost the state $ 1.3 billion. The reforms were canceled after a wave of protests in the country.

In March, the IMF approved provision of $ 4.2 billion to Ecuador, the first tranche of $ 652 million was provided immediately, the second followed in June. The program is designed for three years. According to the agreements, the goal of the Ecuadorian authorities is financial stability, which can be achieved, inter alia, through careful and gradual optimization of fuel subsidies.

source: reuters.com