Ecuador concluded an agreement with the International Monetary Fund (IMF) after almost five months of dialogues and negotiations. On May 31, 2024, the organization’s Executive Board approved the Expanded Service Agreement (SAF) and ordered the disbursement of USD 1 billion immediately.
This is not a single amount, since the credit was approved by USD 4 billionwhich will be disbursed over four years.
For the Minister of Economy and Finance, Juan Carlos Vegathe program with FMI will allow the country to access financing other multilateral organizations such as the World Bank, Inter-American Development Bank, Development Bank of Latin America (CAF), Latin American Reserve Fund, among others.
This will provide liquidity and will allow you, as announced, to catch up with the debts you maintain with the social security, suppliers y decentralized autonomous governmentsFor example. But they will also be used to pay other international debts.
With the same IMF, Ecuador has a debt due to maturities or amortizations. With this pact, the country would have to pay at least USD 403 million to the organization, according to the Ministry of Finance.
The IMF credit will be disbursed in nine paymentsin a period of 48 months. This, as long as Ecuador complies with the conditions determined by the organization and which will be analyzed prior to each new delivery of funds.
The organization carries out a follow-up of the implementation of the policies agreed upon by the country since, according to official information, “the sanitation of the economic and financial situation of a country guarantees refund of the funds to the IMF, allowing other member countries to use them.