He International Monetary Fund (IMF) announced this Thursday that its technical staff has reached an agreement with Ecuador to a loan of about 4,000 million dollars over four years.
The agreement is still subject to approval by the IMF board.
The head of the IMF mission in Ecuador, Varapat Chensavasdijaisaid «the (Ecuadorian) authorities have developed a solid plan and have begun to take important policy measures to address the liquidity and fiscal situation».
The president of Ecuador, Daniel Noboaand the IMF had announced in early March that they were negotiating the conditions of this loan.
Within the framework of the negotiation, the Fund has asked Noboa that Ecuador guarantee macroeconomic and fiscal sustainability.
VAT INCREASE
Among the latest measures that he has carried out, the president of Ecuador decreed the increase of the value added tax to 15% from April 1, as he had announced after managing to carry out the reform that allowed him to raise the rate to that level.
The reform that Noboa managed to carry out raised the VAT from 12% to 13%, but allowed the president to increase it to 15% following a favorable report from the Ministry of Economy and Finance, which he trusts increase collection by about 1.3 billion dollars. EFE
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