The Board of the International Monetary Fund (IMF) would resolve until Monday, December 21, 2020, if it approves the disbursement of USD 2 billion for Ecuador.
The deadline for the IMF to resolve the disbursement of USD 2 billion for Ecuador is until Monday, December 21, if approved, this would be part of the economic program that the Government and the multilateral agreed on September 30, 2020.
It was found that until December 14, 2020, there was no publication of the date for the board of directors meeting on the website of the multilateral lender.
According to one of the government’s economic advisers, Augusto de la Torre, considers that the multilateral will not release a date for the meeting if the Anti-Corruption Bill is not debated in the Assembly.
The approval and publication of the legal reform would be the main pending obligation to receive the disbursement. Other commitments of the program, such as quantitative goals, were met.
The final project will be debated on Tuesday, December 15, 2020, the markets are uncertain about the results of the vote, because of the division in the Assembly and lack of understanding of the legislators with the Executive. The government has little time left to meet the goal of publishing the new law before December 21.
For Morden, this IMF requirement is critical as it would demonstrate broader political support for the Fund’s program.
“The IMF took a chance on the initial outlay on the premise that society would accept the economic program after the elections. If the legislature cannot pass an anti-corruption bill, then doubts arise about support for a more controversial bill like the tax bill, “he said.
According to the Minister of Finance, Mauricio Pozo, the Fund’s resources are to prioritize health, social security, allocations to the GAD, payment of arrears to suppliers and for subsidies to vulnerable sectors.
For a Latin American economist from Barclays, Alejandro Arreaza, the Moreno regime fulfilled a good part in the program with the Fund, when it fulfilled the quantitative commitments above what was required.
The Ecuadorian regime has another commitment with the multilateral to receive the USD 2,000 million, to carry out the reform of the Monetary and Financial Code, which would seek to give autonomy to the Central Bank.
The Ministry of Finance would receive this project this Tuesday from the Monetary and Financial Policy and Regulation Board, which would be sent in January 2021 to the Legislative for treatment.
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