Washington. The technical staff of the International Monetary Fund (IMF) and Ecuador “have reached an agreement” for a loan of about 4 billion dollars over four years, the financial institution reported in a statement.
The agreement, reached within the framework of the Extended IMF Facility (EFS), is still subject to the approval of the Fund’s board of directors.
The government of Ecuadorian President Daniel Noboa requested weeks ago the opening of negotiations with the Fund, in the midst of a war against criminal gangs linked to drug trafficking that, as he acknowledged, “costs money.”
To obtain resources, the Ecuadorian government will raise the Value Added Tax (VAT) from April, which will go from 12 percent to 15, with the aim of raising some 1.3 billion dollars annually.
The Ecuadorian authorities “have developed a solid plan and have begun to take important policy measures to address the fiscal and liquidity situation,” says Varapat Chensavasdijai, head of the IMF mission in Ecuador, quoted in the note.
“IMF staff welcome the reform efforts made by the authorities to help strengthen fiscal sustainability, safeguard macroeconomic stability, and foster a stronger and more inclusive economy,” he adds.
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– 2024-04-29 12:19:45
