The International Monetary Fund (IMF) said on Friday it has completed its second review of Ecuador’s Extended Fund Facility (EFF) and approved a $1 billion increase to the program.
The decision allows Ecuador to immediately access around $600 million, the IMF said in a statement.
The augmentation raises the total value of the program from $4 billion to $5 billion.
“Despite challenging circumstances, Ecuadorian authorities have successfully mobilized non-oil revenues, strengthened fiscal and external buffers, and cleared domestic arrears while protecting vulnerable groups,” said IMF Deputy Managing Director Nigel Clarke.
Ecuador’s foreign dollar bonds rose following the news, with the 2030 note gaining 1.375 cents to trade at 85.5 cents on the dollar—posting a modest gain for the week.
Ecuador’s Ministry of Economy welcomed the IMF’s decision, calling it a recognition of government efforts to address a range of ongoing challenges, including rising insecurity and a prolonged drought.
The IMF noted that the administration of President Daniel Noboa had satisfactorily met the program’s quantitative goals.
