IMF Approves New $261 Million Disbursement for Ethiopia. Addis Ababa, Ethiopia — The International Monetary Fund (IMF) has approved a new disbursement of 261 million US dollars for Ethiopia, following the completion of the fourth review of the country’s 48-month Extended Credit Facility (ECF), according to an IMF statement.
The funds, intended to help Ethiopia cover its balance of payments and budget needs, bring the total IMF disbursements under the programme to just over 2.
18 billion dollars.
The IMF highlighted Ethiopia’s stronger-than-anticipated macroeconomic performance, noting improvements in economic growth, higher exports, improved revenue collection, and rising foreign reserves.
The ECF programme, worth about 3.
4 billion dollars in total, supports Ethiopia’s Homegrown Economic Reform Agenda, which aims to correct macroeconomic imbalances and lay the groundwork for private-sector-led growth.
The IMF said Ethiopia has met all its key quantitative targets and most structural reforms.
However, the federal budget for the current fiscal year deviated from earlier programme assumptions, prompting the authorities to pledge new measures to keep the deficit manageable and spending in line with programme goals.
The Fund is also urging Ethiopia to maintain tight monetary policy to keep inflation in check, continue reforms of the foreign exchange market, and push ahead with tax and customs changes to broaden the tax base.
In a statement, IMF Deputy Managing Director Nigel Clarke praised the authorities’ reforms in foreign exchange, monetary policy, revenue mobilisation, and financial regulation, describing them as delivering “encouraging results”. He warned, however, that maintaining reform momentum remains crucial to Ethiopia’s medium-term growth and poverty-reduction goals.
Further details are expected as the IMF continues to monitor Ethiopia’s economic progress and the implementation of its reform agenda.
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Source: IMF Executive Board Completes the Fourth Review under the Extended Credit Facility Arrangement for Ethiopia [imf.
*Additional reporting by ImNews | Sources consulted: 2*
