The money will support the country’s plan to create a more sustainable and inclusive economy by creating jobs, strengthening the public finances and improving transparency and the fight against corruption, the IMF said.

Anna Ivanova, IMF mission chief for Ecuador, said the loan would support efforts to “improve the living standards of Ecuadorians”.

She said: “The authorities have put together a strong plan, which will help modernise the economy and foster job creation. Importantly, the plan pays close attention to protecting the most vulnerable.

“The fund is committed to continuing to support the Ecuadorian government in their efforts.”

The agreement remains subject to approval by the IMF executive board, which should be granted within the next month.

Between 2007 and 2017, Ecuador experienced a period of strong growth and reduced poverty – from 37.6% to 22.5% – as a result of a boom in oil prices.

Since then, the country has been trying to adjust its public finances and economy to account for low commodity prices and a lack of fiscal savings.

Economic growth was at average of 2.4% in 2017 and the fiscal deficit dropped from 7.3% of GDP in 2016 to 4.5%.

However, poverty remains an issue and the government has said the economy is still not in “good health”.