Second Fiscal Consolidation and Competitiveness Growth SAL

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The Second Fiscal Consolidation and Competitive Growth Structural Adjustment Loan Project (FCCGL-II) provides continued Bank support to the Government of Ecuador's (GOE's) multi-year program of reforms in a single tranche operation. The medium-term objectives of the project are consolidating the Non-Financial Public Sector (NFPS) fiscal position, reducing the country's debt, upgrading creditworthiness, improving competitiveness, and enabling high growth for poverty reduction. Specific objectives are to: (a) support a non-discretionary fiscal policy and improve tax administration; (b) reverse expansionary spending and improve budget transparency; (c) strengthen control of the public payroll; (d) improve public debt management and promote a simple and transparent management of the oil revenue fund FEIREP; (e) support trade reform; (f) promote competitive pricing and regulatory policies; and (g) increase labor flexibility. The project will concentrate on fiscal consolidation and faster growth with competitiveness, deepening the progress achieved in the first FCCGL.