The Monetary Fund International (IMF) recognized Ecuador’s progress in the implementation of the economic policy program and structural reforms undertaken under the last credit program, as reported by the Government of Ecuador after concluding this Friday, November 8, a round of meetings with technical personnel from the financial institution.
The Ministry of Economy and Finance of Ecuador assured in a statement that The IMF has assessed the development of economic measures in it “challenging context caused by the historic drought facing the country”which has led to severe energy restrictions, with scheduled blackouts of up to 14 hours a day.
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Likewise, IMF staff reiterated support for achieving the goals of sustainability and inclusive economic growth.
The economic authorities of Ecuador ratified the commitment to strengthen macroeconomic stability and promote inclusive growth that protects the most vulnerable citizens.
Daniel Noboa
EFE
Among the measures undertaken by the president’s administration Daniel Noboa was involved in a tax reform where he highlighted the increase in the value added tax (VAT) from 12% to 15%.
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Also the unfreezing of the prices of the most consumed gasoline in the country (85 octane), under a scheme that did not completely free prices, that continue to be managed with maximum monthly limits of increase or decrease.
Last May, the IMF approved a credit program of 4,000 million dollars to be implemented within a period of 48 months, while the The Government of Ecuador is currently evaluating the possibility of benefiting from a new line of credit from the same institution.
The money was mainly intended to balance state accounts, which in 2023 closed a deficit of approximately $4.8 billion.which is equivalent to about 5% of the gross domestic product (GDP).
