Ecuador will receive USD 950 million from the IMF

For next August 23, 2021, the disbursement of USD 950 million from the International Monetary Fund (IMF) is expected, as part of the Special Drawing Rights (SDR).

In total, the multilateral organization will deliver USD 456,000 million, equivalent to USD 650,000 million, to all its member countries. In the case of Ecuador, of this total you will receive 2%.

According to Guillermo Avellán, manager of the Central Bank of Ecuador, “the receipt of resources is progressing quite well” and added that it is scheduled for the agreed date.

The official explained that the final value that the country receives will depend on the price on the date of disbursement. In addition, he specified that this amount will be deposited in the Single Treasury Account and specified that the Central Bank is only a payment agent.

To finalize this receipt of USD 950 million, the ECB must send a request to the IMF, so that the agency looks for another central bank from another country interested in buying the SDRs from Ecuador and, thus, converting them to dollars.

“The resources correspond to the Republic of Ecuador (…). It is not the Bank that receives, therefore it is not a financing from the Central Bank to the Ministry of Economy. The Bank is only a fiscal agent that receives and credits the resources ”, he explained.

After the resources are received on August 23, the conversion to dollars will take between five and 10 days, Avellán detailed.

According to the manager, “this money will go to essential expenses”; However, the Government has anticipated that these SDRs will be allocated to international reserves, for which economic experts have warned that the Executive, with this action, will prioritize the payment of debt bonds.

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