ADDIS ABABA, Dec 11 – Ethiopia has secured a staff-level agreement with the International Monetary Fund on the fourth review of its $3.4 billion Extended Credit Facility, positioning the country to receive a $261 million disbursement once the IMF Executive Board gives approval.
The upcoming tranche will raise total IMF financial support under the programme to about $2.13 billion.
The Fund said Ethiopia must maintain strong reform momentum to stabilize the macroeconomic environment, encourage private investment and support medium-term growth and poverty reduction. It also advised a tight monetary stance to contain inflationary pressures.
Ethiopia is restructuring its debts under the G20 Common Framework, following its Eurobond default in late 2023. The government has reached agreement with bilateral creditors but continues to negotiate with private bondholders over the size of potential losses on its 1 billion dollar Eurobond.
The IMF noted that progress on restoring debt sustainability is advancing, though additional steps will be needed to finalise the restructuring and reinforce macroeconomic stability.
The staff-level agreement will now be submitted to the Fund’s Executive Board for endorsement before the next loan tranche can be released.
