Ecuador - First Green and Resilient Recovery Development Policy Loan - Chair Summary - February 1, 2022

Jul 19, 2026

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Executive Directors approved the First Green and Resilient Recovery Development Policy Financing for Ecuador, totaling US$700 million, under terms set out in the President’s Memorandum. The board expressed strong support for reforms aimed at fostering growth, inclusion, job creation, and climate resilience, including low-carbon development to reach carbon neutrality by 2050. Directors emphasized building social and political consensus, improving the social registry targeting, reducing trade barriers, enhancing debt transparency, strengthening public financial management, and sustaining taxation and subsidy reforms.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages1

Reading Time3 min

Executive Directors’ Approval

Reform goals: growth, inclusion, jobs, climate resilience

Social consensus and reform continuity

Targeting, trade barriers, and debt transparency

Coordination with development partners

Public financial management and taxation reforms

Governance risks and communications strategy

Public Disclosure Authorized Public Disclosure Authorized Ecuador First Green and Resilient Recovery Development Policy Loan Chair Summary* February 1, 2022 Executive Directors approved the First Green and Resilient Recovery Development Policy Financing to the Republic of Ecuador in the amount of US$700 million on the terms and conditions set out in the President's Memorandum. Directors expressed strong support for the operation and welcomed the authorities' commitment to tackle structural challenges to foster growth, inclusion, job creation, and climate resilience and advance lowcarbon development so that Ecuador becomes carbon neutral by 2050. They stressed that the government needs to build social and political consensus to continue this reform agenda and guard against policy reversals over the medium term. Directors welcomed the continuation of the reform agenda initiated under the Inclusive and Sustainable Growth DPF series, including through technical assistance. They highlighted measures to further improve the social registry to target social programs better and to continue reducing trade barriers and improving debt transparency. They also noted their support for the ecological transition pillar and the operation’s alignment with the GRID approach. Directors welcomed the effective coordination with the International Monetary Fund, the Inter-American Development Bank, and other development partners in support of the implementation of reforms. They noted the importance of improving public financial management and sustaining taxation and subsidy reforms. They encouraged the Bank to continue its close collaboration with IFC in supporting Ecuador to attract and leverage private investments. Directors recognized the political and governance risks associated with the implementation of the reforms and the importance of an effective communication strategy to help manage them. They encouraged the Bank to support the country in strengthening capacity-building activities and sustain progress as the programmatic series advances. *This Summary is not an approved record.

FAQs

What financing was approved for Ecuador and under what terms?

Executive Directors approved the First Green and Resilient Recovery Development Policy Financing for the Republic of Ecuador in the amount of US$700 million, under terms and conditions set out in the President’s Memorandum.

Which reform objectives were highlighted to advance growth and climate resilience?

Directors supported reforms to foster growth, inclusion, job creation, and climate resilience, advancing low-carbon development so Ecuador becomes carbon neutral by 2050.

What actions did Directors encourage regarding social programs, transparency, and financial management?

Directors encouraged improving the social registry to better target social programs, reducing trade barriers, improving debt transparency, and strengthening public financial management while sustaining taxation and subsidy reforms.

Jul 19, 2026

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