Ecuador Seeks To Secure About $710 Million Through IMF RSF

The International Monetary Fund said on November 9, 2026, that its staff and Ecuadorian authorities had reached a staff-level agreement on the policies and reforms needed to complete the sixth review of Ecuador’s 48-month Extended Fund Facility. Staff also agreed on Ecuador’s request for an 18-month Resilience and Sustainability Facility arrangement with access of SDR 523.275 million, about US$710 million and equivalent to 75% of quota.

The staff-level agreements are subject to IMF Executive Board approval. Upon approval of the EFF review, Ecuador would have immediate access to about SDR 280.5 million, approximately US$380 million. The first RSF tranche follows a different timetable: it would become available only after completion of the facility’s first review and implementation of the agreed reform measures. Discussions led by mission chief Anastasia Guscina took place in Washington, DC, and remotely from September 22 to October 26, 2026.

Sixth-Review Performance and Economic Buffers

IMF staff reported that all quantitative performance criteria for the sixth review were met, several by wide margins. All indicative targets were met except the target on central-government arrears to the domestic private sector, which was missed by a small margin after arrears were identified and reclassified during public-sector restructuring. Revenue collection and spending efficiency have improved, creating more room for priority social and investment spending.

Real GDP growth was 2.1% in the first half of 2026, and IMF staff projected 2.7% for the full year, supported by consumption, investment, and non-oil exports. Headline inflation declined to 1.3% in September 2026 and is expected to stay contained as electricity-related base effects fade and fuel-price pressures ease. The current account is projected to record a surplus of 4.6% of GDP in 2026, supported by a sustained non-oil trade surplus, boosting international reserve buffers to historic highs.

The staff assessment also cites wider cash-transfer coverage for vulnerable households, higher female labor-force participation, and a poverty rate at its lowest level since 2007. It identifies a potentially stronger El Niño impact and more challenging external conditions as key downside risks, mitigated by existing buffers, contingency plans, strong policy implementation, and reform commitment.

Bond Market Return and Structural Reforms

IMF staff said Ecuador returned to international capital markets in January 2026 for the first time since 2019, issuing US$4 billion of sovereign bonds alongside a US$3 billion debt buyback. The transactions built government liquidity buffers, improved the debt profile, and lowered financing needs. A second US$1 billion issuance followed in May 2026, and all three major rating agencies have upgraded Ecuador’s sovereign ratings since program approval.

Structural-benchmark progress includes regulations intended to strengthen the governance of cooperatives, intensify supervision of weaker entities, and continue putting risk-based supervision into practice. The authorities have also taken steps to improve governance and transparency in the oil sector, increase trade integration to support export diversification and growth, and update the anti-money-laundering and counterterrorist-financing framework to manage risks from illicit financial flows.

Proposed Resilience Reforms

The proposed RSF arrangement would focus on three pillars: building resilience and reducing external risks in the energy sector; reducing social and economic vulnerabilities to natural disasters; and strengthening climate governance and sustainable finance. The staff statement says the authorities’ broader policy actions are enhancing macroeconomic and financial stability, safeguarding dollarization, strengthening fiscal sustainability, and protecting vulnerable groups.

The RSF is therefore a framework for reform-linked financing rather than an immediate disbursement. The central question for its first review is whether Ecuador can implement the agreed energy, disaster, and climate measures while preserving the fiscal and reserve buffers that staff says mitigate the program’s downside risks.