Second Inclusive and Sustainable Growth

closed

Closed

The operation is part of the World Bank response to the COVID-19 crisis in Ecuador. The proposed operation is the second in a programmatic Development Policy Financing (DPF) series of three operations. The World Bank had been working with Ecuador in a DPF series to support the Government of Ecuador’s structural reform program, aimed at: (i) increasing the efficiency of public spending and revenue mobilization; (ii) removing barriers to the development of the private sector; and (iii) ensuring that vulnerable segments of the population are protected from the impacts of the first two sets of reforms. However, following the COVID-19 crisis, the series has been restructured to support Ecuador’s responses to the emergency, while preserving the bulk of the medium-term reform agenda contemplated initially, which is now even more critical to support Ecuador’s economy in the post-crisis recovery. This proposed US506 million dollars operation provides critical financing to Ecuador in a context of deep crisis. It consists of a US500 million dollars loan and US6 million dollars in concessional contribution on a non-reimbursable (grant) basis under the Global Concessional Financing Facility (GCFF). The GCFF was set up to support middle-income countries hosting large numbers of refugees, such as in the case of Venezuelan migration to Ecuador. The DPF series plays a central role in the World Bank Group’s enhanced engagement with the Government in the context of a new County Partnership Framework (CPF). The WBG’s FY19-FY23 CPF (report no. 135374-EC), discussed by the World Bank Board of Directors in June 11, 2019, constitutes the first full-fledged WBG Strategy for Ecuador since 2007. The DPF series underpins two of the three results areas covered by the CPF. Pillars 2 and 3 of the DPF series support CPF objectives under results area: i) supporting fundamentals for inclusive growth, while pillar 1 supports CPF objectives under results area; and ii) building human capital and protecting the poor.

World Bank Group

Project

Commercial, Government, Education