The International Monetary Fund has approved a new disbursement of 261 million US dollars for Ethiopia, after completing the fourth review of the country’s 48‑month Extended Credit Facility.
The money will help Ethiopia cover its balance of payments and budget needs, bringing total IMF disbursements under the programme to just over 2.18 billion dollars.
According to the Fund, Ethiopia’s economy is performing better than expected, with strong growth, higher exports, improved revenue collection and rising foreign reserves, while inflation continues to ease.
The ECF programme, worth about 3.4 billion dollars in total, is designed to support Ethiopia’s Homegrown Economic Reform Agenda, which aims to correct macroeconomic imbalances and lay the groundwork for private‑sector‑led growth.
The IMF says 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, and the authorities have pledged 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.
On debt, the IMF welcomes progress under the G20 Common Framework, including the signing of a memorandum of understanding with official creditors. Talks with private lenders are still ongoing.
In a statement, IMF Deputy Managing Director Nigel Clarke said the authorities’ reforms in foreign exchange, monetary policy, revenue mobilisation and financial regulation are delivering “encouraging results”, but warned that maintaining reform momentum remains crucial to Ethiopia’s medium‑term growth and poverty‑reduction goals.
Source: Africanews
