IMF mission begins annual review of Ecuador’s economy and debt

RIO DE JANEIRO, BRAZIL – A mission of the International Monetary Fund (IMF) started this Monday the annual review of Ecuador’s economic situation, as well as the progress of a credit program subscribed last year for US$6.5 billion, destined to face the financial impact of the covid-19 pandemic in the country.

The mission’s work began after a meeting between a team from the Government of Ecuador, led by the Minister of Economic, Simón Cueva, and the IMF mission, led by Ceyda Oner, the Ministry informed communiqué.

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Both parties discussed the activities to be carried out by the IMF mission in Ecuador for the annual review of the country’s economic situation under Article IV of its Articles of Agreement. It holds periodic conversations with the organization’s member countries.

Likewise, the IMF mission will analyze the progress of the so-called Extended Fund Facility Agreement, which was signed in September 2020 to address the financial crisis and the serious effects of the coronavirus pandemic.

Throughout August, the IMF mission will hold a series of technical meetings with different State institutions, representatives of the private sector, and civil society to obtain information for its evaluation.

Minister Cueva assured that his country is jointly preparing the scenario for the recovery of the national economy with the IMF. He remarked that he would communicate on the progress and agreements reached with the multilateral organization in due time.

Today’s meeting with the IMF, which took place in person and virtually, was attended by authorities from several ministries and other Ecuadorian government entities, the national public banks, the Board of Monetary and Financial Policy and Regulation.

Also, authorities from the Central Bank of Ecuador, the Comptroller General’s Office, the Superintendencies of Banks, Popular and Solidarity Economy, Companies, Insurance and Securities, and several social security institutes.

In September 2020, the Ecuadorian government, led by Lenín Moreno (2017-2021), reached a credit agreement with the IMF for US$6.5 billion for a 27-month term to address the critical situation aggravated by the effects of the coronavirus pandemic.

The IMF, which has already disbursed the loan, is now working with the new government of conservative President Guillermo Lasso, who took office on May 24.

In May 2020, the IMF had already approved another credit for Ecuador for US$643 million through the Rapid Financing instrument to face liquidity problems derived from the impact of covid-19.

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