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Ecuador's Extended Facility program envisages the delivery by the IMF of a US$6.5 billion aid package.
Ecuador's President Lenin Moreno on Wednesday announced the delivery of a second US$2 billion aid package by the International Monetary Fund (IMF) to support the country's economy.
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Economy Minister Mauricio Pozo vowed that the IMF resources will be distributed to health, education, and social protection services. The resources will also serve to reduce the unpaid debts with suppliers, subnational governments, and other entities.
The second financial delivery by IMF comes as part of a US$6.5 billion bailout that will be executed in 27 months from its approval on September 30.
"This financial support is fundamental for the gradual recovery of liquidity, to make the economy more dynamic, strengthen reactivation programs and increase social protection," Moreno twitted.
In an exclusive interview with @AquiConErnesto, former president Rafael Correa refuted right-wing figures who are claiming @ecuarauz wants to dedollarize Ecuador's economy. Correa says this would be a disaster that benefits the elites, who have nearly $30Bln in offshore accounts. pic.twitter.com/ZIlX3lzSD7
— Ecuador On Q (@Ecuador_On_Q) December 8, 2020
Parliament is set to discuss a Monetary and Financial Reform in January as part of the requirements to receive the next IMF disbursement in 2021.
So far this year, Ecuador has received US$4,643 million from the IMF. Of this amount, US$643 million were granted as an emergency credit in May and US$4 billion on the account of two disbursements since the subscription of the Extended Facility program (EFF) in October and December.
According to the latest official projections, economic activity in the country is expected to shrink by 9.5 percent.
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