IMF and Ethiopia Achieve Staff-Level Agreement on First Review of Loan Program, According to Reuters

Ethiopia and IMF Reach Agreement on Economic Policies

WASHINGTON – Staff from the International Monetary Fund (IMF) and Ethiopia have finalized an agreement on economic policies as part of the first review of a four-year loan arrangement worth $3.4 billion. An announcement from the IMF indicated that the formal completion of this review by the fund’s Executive Board would enable Ethiopia to access approximately $345 million in financing.

The IMF emphasized that the implementation of Ethiopia’s economic reform program, which includes the adoption of a floating exchange rate, is progressing positively. The organization stated that "successful implementation of reforms will help strengthen Ethiopia’s macroeconomic stability, improve foreign exchange availability, and support sustainable economic growth."

As the second-most populous country in Africa, Ethiopia secured the $3.4 billion financing program from the IMF in July. The nation, facing challenges such as high inflation and persistent shortages of foreign currency, became the third African economy in recent years to default on its debt at the end of last year.