IMF Boosts Ecuador's Financial Strategy with $1 Billion Program Augmentation

The International Monetary Fund (IMF) announced on Friday that it has finalized its second review of Ecuador's Extended Fund Facility, granting an augmentation of the program by $1 billion. This development allows Ecuador to immediately tap into $600 million, setting the program's overall scope to $5 billion from the previous $4 billion.

IMF Deputy Managing Director Nigel Clarke commended Ecuadorian authorities for navigating challenging circumstances by bolstering non-oil revenues, shoring up fiscal resilience, and addressing domestic obligations, all while safeguarding vulnerable populations. Following the announcement, Ecuador's foreign dollar debt saw an uptick, with the 2030 note increasing to 85.5 cents on the dollar.

Ecuador's economy ministry celebrated the IMF's decision, interpreting it as acknowledgment of the government's ongoing endeavors to tackle pressing issues such as insecurity and drought. The IMF also recognized President Daniel Noboa's administration for meeting the stipulates quantitative goals satisfactorily.

(With inputs from agencies.)