Ecuador

                                  Country Partnership Framework
                                                and
                     Inclusive and Sustainable Growth Development Policy Loan

                                            Chair Summary*

         Executive Directors discussed the joint IBRD/IFC/MIGA Country Partnership Framework (CPF)
for the Republic of Ecuador for the period FY19-FY23. They approved the First Inclusive and Sustainable
Growth Development Policy Loan for Ecuador in the amount of US$500 million.

         Directors supported the proposed CPF and emphasized the need to implement key reforms to ensure
macroeconomic stability in the long-term, enhance transparency and accountability, and increase the
effectiveness of the social protection system for the most vulnerable, especially in the context of the large
influx of migrants. They also noted the need to make the investment climate more attractive to the private
sector and encouraged more active IFC and MIGA engagement to support the country’s transition to a
private sector-led growth model.

        Directors welcomed both the alignment of the DPL with the CPF results areas and the
Government’s efforts to address macro-fiscal imbalances and the shift from a state-led economic model to
a balanced, productivity-driven one. They inquired about the size and ambition level of the DPL and
underscored the appropriate targeting and sequencing of the reforms. They also commented on the pace
and sustainability of the ongoing fiscal consolidation efforts and stressed the importance of mitigating the
impacts on the poor and vulnerable, with a focus on strengthening climate resilience and supporting
structural transformation and job creation.

        Directors encouraged the WBG to continue its active engagement with the Government and noted
the need to further strengthen the governance framework and build institutions. They also encouraged close
coordination with the IMF and other development partners to avoid duplication and ensure sustained
implementation of the reforms.




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*This Summary is not an approved record.