"Program performance has been strong," the International Monetary Fund announced in a statement, adding that the Ecuadoran authorities had met all the relevant "quantitative performance criteria and indicative targets" under an existing 48-month loan agreement.

"They have also made substantial progress on the implementation of their ambitious structural reform agenda supported by the program," the IMF statement added.

The announcement marks the first review of the loan program, signed in May this year, which is worth a total of around $4 billion.

The deal was struck as Ecuador faced an energy crisis sparked by a continent-wide drought -- linked to the El Nino weather pattern -- that left key hydroelectric reservoirs nearly depleted.

This led to regular power cuts, which were costing Ecuador's economy $72 million each day, the country's energy minister said at the time.

If, as is normally the case, the IMF executive board approves the first review, Ecuador will have access to a disbursal worth around $500 million.

"Amid a challenging macroeconomic environment and renewed pressures from the electricity crisis caused by a historic drought, our objective remains to support the authorities' efforts to enhance the living standards of all Ecuadorans," IMF Ecuador mission chief Varapat Chensavasdijai said in a statement.

This, he added, included a focus on "protecting the most vulnerable, safeguarding macroeconomic stability and promoting sustainable and inclusive growth."