Ecuador cleared to receive new IMF loan

The International Monetary Fund (IMF) said Tuesday that it will release a half billion dollar loan to Ecuador by December 31. The announcement followed discussions in Washington, D.C. last week with Ecuador’s finance ministry.

IMF Director Kristalina Georgieva

IMF Director Kristalina Georgieva expressed her satisfaction with the government’s efforts to deal with fiscal and social concerns. “I fully support Ecuador’s efforts to implement policies to strengthen the economy, promote equitable and sustainable growth and protect the most vulnerable,” she said. “I recognize that these are difficult times for Ecuador as well as for other Latin American countries, and I believe the government has acted responsibly in seeking solutions.”

Georgieva said she believes that ongoing discussion in the National Assembly will lead to a stronger economy. “Legislation passed Monday is a good first step and other proposals are being discussed that should provide further reform to the tax system, budget and monetary code,” she said.

According to Georgieva, the IMF is sympathetic to delays in achieving the goals of the March agreement with Ecuador. “The protests in October raised new issues that had to be addressed and forced a revision of the agreement schedule. We will continue to work with the government and are optimistic of a positive outcome.”