WASHINGTON, D.C., November 26, 2025 — The World Bank Group’s Board of Executive Directors today approved a financing package that supports Ecuador’s efforts to strengthen fiscal sustainability, boost job creation, and improve disaster risk management.
The US$1.1 billion package has two operations. A US$900 million financing program supports public policies that help promote responsible fiscal management, private sector–led growth, and job creation, while protecting the most vulnerable. The other operation, a US$200 million Catastrophe Deferred Drawdown Option (Cat DDO), aims to strengthen the government’s program to manage risks arising from climate, geophysical, and public health events by developing policies that build institutional capacity and integrate climate resilience and adaptation into designated sectors.
According to Sariha Moya, Ecuador’s Minister of Economy and Finance, “The approved financing aims to strengthen the country’s financial capacity to respond promptly when a disaster strikes and to protect the most vulnerable groups in particular, while recognizing the government’s efforts to strengthen public finances and offer better conditions for investing in the country and creating jobs.”
Issam Abousleiman, the World Bank’s Country Director for Bolivia, Chile, Ecuador, and Peru, noted that “Ecuador has made great strides in strengthening the sustainability of public finances and sending confidence-boosting signals in the markets. This financing reflects our commitment to responsible fiscal management that protects the most vulnerable groups. Climate events, as well as natural and public health hazards, threaten the country’s economic stability and the population’s well-being, which is why it is important to move forward with comprehensive disaster risk management initiatives.”
The Cat DDO, the first operation of its kind in the country, provides immediate access to financing in the event of a major natural or epidemiological disaster. The government of Ecuador is currently developing the National Disaster Risk Reduction Plan, with support from the World Bank and financing through the Global Facility for Disaster Reduction and Recovery (GFDRR).
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