The International Monetary Fund (IMF) is closely monitoring the conflict stemming from the assault on the Embassy of Mexico in Ecuador, according to Rodrigo Valdés, the director of the Department of the Western Hemisphere of the IMF. Valdés stated that the IMF has been in discussions with Ecuadorian authorities regarding a potential agreement to resolve the situation.
At a press conference, Valdés emphasized the importance of resolving the embassy conflict through diplomatic means and in accordance with international laws. He revealed that the negotiating team of the IMF recently engaged in discussions with Ecuadorian authorities on this issue and other related topics.
The illegal and arbitrary invasion of the Mexican Embassy, which occurred after former Vice President Jorge Glas had been granted asylum, has led to a rupture in relations between Mexico and Ecuador. The Mexican government has taken the matter to the International Court of Justice in The Hague, citing violations of international law and national sovereignty.
Meanwhile, Ecuadorian President Daniel Noboa has announced ongoing negotiations with the IMF to secure financial stability for the country. These talks could culminate in an agreement within the next two to three months. This comes after Ecuador successfully completed a $6.5 billion program with the IMF in 2022, marking the end of a two-decade hiatus in cooperation.
Valdés confirmed that progress is being made towards a new agreement with Ecuador, aimed at supporting the country’s efforts to tackle economic challenges. Since assuming office in November 2023, President Noboa has implemented policy measures to address liquidity issues, fiscal deficits, and security concerns, which have been acknowledged by the IMF as significant steps in the right direction.
The ongoing discussions between Ecuador and the IMF signify a collaborative effort to stabilize the country’s economy and pave the way for future growth. The IMF will continue to closely monitor the situation and provide support as needed.
Source: EFE