IMF Reaches Staff-Level Agreement on the Third Review under Ecuador’s Extended Fund Facility Arrangement

IMF Reaches Staff-Level Agreement on the Third Review under Ecuador's Extended Fund Facility Arrangement

October 9, 2025

• Staff of the International Monetary Fund (IMF) and the Ecuadorian authorities have reached Staff-Level Agreement on a set of comprehensive policies and reforms needed to complete the Third Review under the Extended Fund Facility (EFF) arrangement.
• Program performance remains strong. The authorities met all end-August 2025 quantitative performance criteria, some with significant margins. They have also made substantial progress on the implementation of their structural reform agenda, notably on fiscal, governance, and growth-enhancing areas.
• The authorities have affirmed their continued commitment to implement an ambitious reform agenda to strengthen fiscal sustainability and boost private investment and job-rich growth.

Washington, DC: An International Monetary Fund (IMF) team led by Patrizia Tumbarello held discussions with the Ecuadorian authorities during September 17 to October 8, 2025 on the Third Review of the country's 48-month Extended Fund Facility (EFF) Arrangement.

Upon the conclusion of the discussions, Ms. Tumbarello issued the following statement:

"We are pleased to announce that IMF staff have reached Staff-Level Agreement with the Ecuadorian authorities on the Third Review under the EFF Arrangement. In July, the IMF Executive Board approved an augmentation of the program of about US$1 billion (SDR 750.4 million), raising total access under the program from about US$4 billion to about US$5 billion. The authorities' program will also catalyze additional financial support from multilateral partners. Subject to confirmation of international partners' financial commitments and approval of this Review by the IMF Executive Board, Ecuador would have immediate access to about US$600 million (SDR 438.4 million).

"Real GDP is recovering faster than expected, driven by stronger domestic demand and record nonoil exports. The current account balance continues recording sizable surpluses, supporting a further increase in international reserve buffers. The economy has shown resilience but is still subject to several challenges, including acute global policy uncertainty and volatility in international financial markets. The authorities' decisive policy actions and steadfast commitment to their economic program helps mitigate risks.

"The authorities continue to make significant progress in implementing their economic reform plan supported by the EFF arrangement. All quantitative performance criteria for end-August 2025 were met, some with significant margins. The authorities have taken important actions to strengthen fiscal sustainability and liquidity buffers, while protecting the most vulnerable. In addition, the authorities are advancing their ambitious structural reform agenda to safeguard financial stability, enhance governance, and boost private investment and job-rich growth.

"The authorities' policy actions and reforms are helping to enhance macroeconomic and financial stability, safeguard dollarization, strengthen fiscal sustainability, protect vulnerable groups, and support stronger and more inclusive growth.

"The IMF staff wishes to express its gratitude to the Ecuadorian authorities for the constructive and frank discussions during this Review."