IMF Approves $340.7 Million Loan for Ethiopia

IMF has approved $340.7 million loan for Ethiopia. IMF executive board on Friday approved the first review of Ethiopia’s $3.4 billion lending program.

“The IMF Board completed the first review under the Extended Credit Facility (ECF) for Ethiopia, allowing the authorities to draw the equivalent of about US$340.7 million (SDR 255.6 million). The ECF was approved by IMF Board in July 2024 and forms part of a US$10.7 billion support package from development partners and creditors for Ethiopia,” the IMF said in a statement.

Ethiopia secured the four-year financing program from the International Monetary Fund in July after carrying out a series of reforms like like liberalization of foreign exchange market.

IMF lauded the new reforms introduced by the Ethiopian government by saying, “the implementation of the authorities’ economic program, including the transition to the new exchange rate regime, has been commendable. The spread between the formal and parallel market exchange rates has narrowed to low levels, with little sign of disruption to the broader economy.”

The IMF authorities urged the Ethiopian authorities to continue working to reach an agreement on debt treatment with official creditors by the time of the second program review.

Read more..

Ethiopian Birr Ranked as One of the Weakest Currencies in Sub Sahara