Ecuador and IMF agree to review the EFF for 27 months

The technical staff of the International Monetary Fund (IMF) and the Ecuadorian authorities reached an agreement on the first review of the Extended Fund Facility, EFF, (SAF in Spanish) of 27 months, by which the Andean country would have access to financing of approximately 2,000 million dollars once the Fund’s executive board completes said review.

As reported by the agency in a statement issued, the agreement is subject to the approval of IMF management in the coming weeks, as well as the implementation by the Ecuadorian authorities of previous actions and compliance with all relevant policies of the Fund.

The announcement comes after the virtual meetings that the Washington-based institution had with the Ecuadorian authorities from October 28 to November 20 to discuss the progress of reforms and the authorities’ policy plans in response to the impact of Covid- 19 and the price of oil.

The leader of this IMF mission, Ceyda Oner, celebrated the “decisive” measures undertaken by the Government of Lenín Moreno to contain the Covid-19 outbreak and its “continuous efforts to advance its reform agenda.”

In this context, the agency’s staff considers that the contraction in economic activity will moderate at the end of the year, going from a decrease of 11 % in the second quarter to a fall of 9.5 %, given the new context in which New infections and deaths from Covid-19 have moderated compared to the high levels seen at the beginning of the year. It could mean that the Ecuadorian economy is showing “soft” signs of recovery since the reopening began in July.

K. Tovar

Source: dpa