Regarding policies to mobilise domestic resources for development and improve fiscal conditions, Ecuador has been focusing on promoting redistributive economic policies and equitable tax collection as specified under its 2024-25 National Development Plan (NDP). The NDP also focuses on enhancing customs efficiency and ensuring progressive public spending to foster social mobility. The Development Bank of Ecuador plays a critical role by financing infrastructure projects and public works across the country. For instance, in the first quarter of 2024, the bank facilitated USD 146.7 million across 65 credit operations, benefitting more than 7 million people in various provinces. The bank’s strategic objective to support territorial development aligns with national policies that aim to reduce inequality and address chronic child malnutrition through targeted project financing. In its efforts to attract new sources of private investment, the Government of Ecuador promotes the Investment Contract as a legal instrument at both national and international levels. This contract defines the terms, benefits, and incentives available to companies making new investments in the country. It enables investors to secure applicable tax incentives, access national or international arbitration, and benefit from additional advantages. The development of the National System for Investment Attraction and Facilitation focuses on the Single Investment Window, a tool that coordinates efforts between public and private institutions to simplify, facilitate, and optimise processes for supporting and implementing national and foreign investment projects.
Regarding policies to advance a sound, inclusive and sustainable financial market, Ecuador has implemented the National Financial Inclusion Strategy to increase access to financial services, particularly for underserved populations in rural areas. This strategy includes deploying mobile banking units and expanding microfinance services.
In terms of regional and international finance and partnerships to catalyse international resources, Ecuador achieved a significant milestone in 2023 with a historic USD 1.6 billion debt-for-nature swap, the largest of its kind, reducing Ecuador's debt stock by USD 1 billion and saving USD 1.5 billion in debt service. The initiative aims to allocate substantial funds for the conservation of the Galapagos Islands, solidifying Ecuador's leadership in using financial mechanisms for environmental protection. The European Investment Bank Global contributed USD 125 million to enhance the power interconnection system between Ecuador and Peru as part of the EU-Latin America and the Caribbean Global Gateway Investment Agenda. To combat organised crime and drug trafficking, the European Union funded the Strengthening of Security Co‑ordination Mechanisms in Guayaquil project, which also enhances co‑ordination among key Ecuadorian security institutions. Additionally, the World Bank Group’s Country Partnership Framework for Ecuador has facilitated re-engagement in targeted development areas. Moreover, the Promoting South-South and Triangular Co‑operation project, supported by a debt-swap program with Italy and administered by the United Nations Development Programme, aims to boost institutional co‑operation. Ecuador also leverages concessional international climate finance to meet its Nationally Determined Contributions targets. With substantial EU support, it promotes strategic private investments, particularly in the mining sector, to align its regulations with international standards.