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ECONOMY | 21-02-2019 14:05

Ecuador agrees US$4.2-billion financing deal with IMF

The arrangement is expected to be brought to the IMF Executive Board for its final approval in the coming weeks.

The International Monetary Fund's staff has agreed to support the economic policies of the Ecuadorean government with US$4.2 billion over the next three years.

The arrangement is expected to be brought to the IMF Executive Board for its final approval in the coming weeks.

The IMF said the agreement is part of a broader effort by the international community that totals US$10 billion and includes financial support of almost US$6 billion over the next three years from the Development Bank of Latin America, the Inter-American Development Bank, the Latin American Reserve Fund and the World Bank.

"The government's plan is aimed at creating a more dynamic, sustainable, and inclusive economy," said Anna Ivanova, the IMF's mission chief for Ecuador.

Ecuador faces a fiscal deficit of US$10 billion, which has caused delays in paying salaries to government employees and suppliers.

The agreement marks the end of at least a decade-long estrangement between nation with the IMF since then-president Rafael Correa kicked out the IMF mission short after taking office in 2007.

"Our objective has been and remains to support the authorities' efforts to improve the living standards of all Ecuadoreans," Anna Ivanova, the IMF's top official in Ecuador, said in a statement.

President Lenín Moreno plans to boost growth following four principles: increasing competitiveness, protecting the poor, sustainable fiscal policy and combating corruption, Ivanova said.

The IMF agreement with Ecuador is subject to approval by the fund's board, which will consider the arrangement "in the coming weeks," according to the monetary institution.

- AP/AFP

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