The International Monetary Fund and Ecuador reached a so-called “staff-level agreement” on economic policies that would enable the South American nation to access about USD800 million in financing, the multilateral lender said in an official statement.

The accord is subject to the approval of the IMF’s Executive Board in the coming weeks, the IMF said in the statement, “contingent on the implementation by the authorities of prior actions and fulfillment of all relevant Fund policies.”

The program seeks to support the “recovery from the pandemic, expand social assistance to protect Ecuador’s vulnerable families, promote a transparent management of public resources, restore fiscal sustainability with equity, and promote sustainable growth with high quality jobs,” the statement said.

The agreement reached is part of the second and third reviews of a 27-month Extend Fund Facility, known as EFF. Upon completion of the review, Ecuador would have access to about USD800 million, the equivalent of SDR 564,9 million.

Ecuador endured its largest economic contraction in 2020 as the COVID-19 pandemic affected key productive sectors and the GDP shrank 7.8%. The IMF projects a GDP expansion of 2.75% this year and 3.5% in 2022, according to the statement.

Ecuador’s policymakers are committed to continue improving public financial management, enhancing transparency in the management of public resources and advancing the anti-corruption agenda, “which would strengthen confidence in public institutions and boost private sector activity,” the IMF said in the statement.