USD 700 million Will Be Disbursed To Ecuador By The IMF

The sixth and final review of the 27-month Expanded Facility of the Fund (SAF) for Ecuador has been completed, according to the Executive Board of the International Monetary Fund (IMF). The immediate disbursement of US$700 million will be one of its first moves, El Comercio reported.

In a statement posted on the IMF website, the organization claims that Ecuador's FEP-supported economic plan "has helped stabilize the economy, strengthened fiscal and debt sustainability, strengthened the foundations of the dollarization regime, expanded the coverage of social assistance to protect the vulnerable, promoted a transparent and more efficient management of public resources, and has laid the foundations for sustainable and inclusive growth."

According to IMF Deputy Managing Director, Antoinette Monsio Sayeh, “Ecuador has reached an important milestone with the completion of the EFF-supported program, the first completion in two decades. The program has contributed to mitigating the socioeconomic effects of the pandemic and other external shocks while maintaining macroeconomic stability.”

“Prudent fiscal management enabled the authorities to meet all quantitative performance criteria by end-August 2022 and the public sector is expected to post its first surplus since 2008. The social safety net has been further strengthened and now reaches more than 80% of low-income families, even in remote areas,” Sayeh added.

As part of the agreement's review program, the International Monetary Fund (IMF) representatives in Ecuador will be finishing a complete set of activities in the country, said reports.

A meeting between Carlos Julio Arosemena, the general manager of the Ecuadorian Social Security Institute (Biess), and members of the multilateral and the World Bank (WB) took place on Dec. 9, 2022.

The purpose of the meeting was to reveal the financial strategy used by the bank for the administration of the pension funds, to the representatives of the international organizations, was the purpose of the meeting.

The regulatory framework and the Biess finance mechanism were two of the particular subjects developed. The development of financial statements, risk management, the make-up of credit and investment portfolios, the evolution of assets, and indications of the entity's profitability, solvency, and liquidity were also covered.