APA-Addis Ababa (Ethiopia) Ethiopia and the International Monetary Fund (IMF) are still in talks over a new support program with the East African nation requesting at least $2 billion, Director of Strategic Communications of the global lender said over the weekend.
Ethiopia has been hit by multiple shocks, including drought, internal conflict, as well as the impact of the pandemic and the war in Ukraine.
The Ethiopian authorities have prepared a three-year homegrown economic reform agenda to respond to the economic challenges ranging from post-conflict reconstruction to high inflation and shortages of foreign exchange.
They requested the global lender’s support, looking to borrow at least $2 billion dollars.
IMF Director for Strategic Communications Julie Kozack in a statement said discussions between the two sides are still in talks but any program support would require creditors’ financial assurances.
The director said, “Discussions are now ongoing on the economic policies and reforms that could, potentially, be supported by an IMF program, … which supports the home-grown economic reform agenda to help address macroeconomic vulnerabilities and to help unlock Ethiopia’s considerable economic potential.
“A new program would also require clear commitments from development partners and financing assurances from creditors under the G20 common framework to help ensure that it can meet its objectives.”
Ethiopia requested a debt revamp under Group-20’s Common Framework, a process through which low-income countries can seek debt restructuring, in early 2021.
But the country has not yet reached a restructuring deal under the framework which, experts saying has not lived up to expectations due to its delays.
MG/as/APA