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Ecuador dollarization seems to be working-IMF

CAMBRIDGE, Ma, March 3 (Reuters) - Ecuador, which resorted to ``dollarization done out of desperation'', has introduced serious laws and its plans to use the greenback seem to be working, IMF acting head Stanley Fischer said on Friday.

Fischer, speaking at a conference on Latin America, said the IMF was ``days away'' from agreeing on a financial package that would provide backing for the currency.

``There will be in all likelihood the provision of financial assistance,'' he added, noting that this would involve the IMF, World Bank and other lenders.

Asked about Ecuador's latest legislation, which lays down the framework to swap the country's sucre currency for the dollar, he said: ``They did get a pretty serious law on dollarization and restructuring the economy.''

The idea of using the dollar ``seemed to be working,'' Fischer added.

Ecuador, which has been negotiating about new loans from the IMF for almost a year, hopes its plans to use the dollar will stabilize an economy mired in its worst crisis in five decades. The legislation will also open up the economy to foreign investment and cut a yawning budget deficit.