IMF approved $1bn in immediate disbursements for Ecuador under its 27-month Extended Fund Facility (EFF) after concluding its fourth and fifth reviews last week. These funds will be used for budget support. For the past two weeks, protests by indigenous groups have erupted, demanding more energy subsidies and price controls of basic goods. Deputy Managing Director Antoinette Sayeh said, “While the ongoing war in Ukraine is adversely affecting some export sectors, higher oil prices are improving Ecuador’s external and fiscal balances. In 2020, the country had defaulted on debt and during the same year in September, the IMF approved an EFF arrangement totaling $6.5bn for Ecuador.
Ecuador’s dollar bonds were trading higher with its 1% 2035s up over 1.4 points to 52 cents on the dollar, yielding 6.50%.
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