IMF Approves Third Review of Ethiopia’s Economic Program

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The International Monetary Fund (IMF) has reached a staff-level agreement with Ethiopian authorities on the third review of the country’s Extended Credit Facility (ECF) program.

Key points:

  • Ethiopia’s macroeconomic performance has exceeded expectations, with stronger-than-forecast inflation control, export growth, and international reserves.
  • The review, once approved by the IMF Executive Board, will unlock $260 million in financing, bringing total IMF support under the program to $1.85 billion.
  • Ethiopia has implemented reforms, including a flexible exchange rate regime, modernization of monetary policy, and strengthening of state-owned enterprises.
  • The IMF emphasized the importance of maintaining reform momentum to correct macroeconomic imbalances and restore external debt sustainability.
  • A memorandum of understanding with official creditors is expected before the IMF Board’s final approval.

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