Weekly Report - 01 August 2024 (WR-24-30)

The US$4bn deal that Ecuador reached with the International Monetary Fund (IMF) in May was a financial lifeline for President Daniel Noboa, averting the risk of default and giving more time for the benefits of his government’s tax reform to be felt. However, the deal has faced criticism in Ecuador, not least due to the IMF’s call for fuel subsidies to be reined in as part of a package of cost-cutting measures [WR-24-24]. The agreement is now facing a new threat in the national assembly, after a congressional commission urged legislators to revoke the deal and block further debt repayments to the IMF.