The proposed package, amounting to $2 billion, would be made available over the next three years to support the government of Ecuador’s ambitious program of economic and structural reform. The package comprises a Stand-By Arrangement of $300 million from the IMF that is expected to be presented to the IMF’s Executive Board within a month and would be disbursed during the next 12 months. In addition, the proposed package consists of new loans totaling $425 million from the World Bank Group, $620 million from the IDB, and $700 million from CAF.
If approved by the Executive Boards of the institutions, $900 million will be available to Ecuador in the next 12 months.
The loans are a combination of balance of payments support and investment lending with a strong social content. They are intended to assist the implementation of dollarization and the resolution of the banking crisis, and to strengthen the public finances, including Ecuador’s social safety net, to minimize the impact on the poor of the nation’s difficult economic situation.
Disbursements this year are likely to begin within a month, by which time the Ecuadoran Congress is expected to have approved complementary measures necessary to implement Ecuador’s reform program.