IMF Board Completes Fourth Review of Ethiopia Program, Clearing About $261 Million Disbursement
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The International Monetary Fund’s executive board completed the latest review of Ethiopia’s current financial programme on Friday, a decision that will lead to the disbursement of about $261 million to the government.
Ethiopia secured the $3.4 billion IMF programme in 2024 as part of a broad reform package that includes an overhaul of external debt, and the Fund said maintaining reform momentum was essential to consolidate gains and support growth and poverty reduction over the medium term.
The IMF said maintaining tight monetary conditions remains important to sustain disinflation, and noted that fund staff and the Ethiopian government reached agreement on the review — the fourth under the programme , last month.
The Ethiopian government said earlier this month it reached a preliminary agreement with a group of bondholders on restructuring its only $1 billion international bond, with the deal requiring approval from the IMF and bilateral creditors.
The IMF described the preliminary agreement as an important step toward restoring debt sustainability and said staff are assessing whether it is consistent with the objectives and parameters of the IMF-supported programme, according to communications director Julie Kozack.
Ethiopia defaulted on its Eurobond two years ago after opting to rework its external debt under the G20 Common Framework, and it formalised a restructuring deal with bilateral creditors in July last year designed to provide cashflow relief of more than $3.5 billion.
