June 12, 2025 — The International Monetary Fund (IMF) announced on Wednesday that it has reached a staff-level agreement with Ecuador on the second review of its ongoing economic program, which now includes a proposed $1 billion augmentation.In light of a more challenging external environment, Ecuadorian authorities requested that the size of the original IMF arrangement be increased from $4 billion to $5 billion, the IMF said in its statement.“The staff-level agreement is aimed at helping Ecuador navigate the complex economic landscape, support fiscal sustainability, and strengthen resilience,” the IMF noted.The agreement is still subject to approval by the IMF’s Executive Board, which is expected to review it in the coming weeks.Ecuador’s government is pursuing reforms under the IMF-supported program to stabilize public finances, enhance social spending, and boost investor confidence, even as the country faces external pressures from global market volatility, commodity price fluctuations, and domestic political uncertainty.The IMF added that Ecuadorian authorities remain committed to the program’s objectives and are taking steps to implement structural reforms while protecting the most vulnerable segments of the population.
