The International Monetary Fund (IMF) Executive Board said it would give Ethiopia about $251 million as part of its Extended Credit Facility (ECF) according to a pledge it made last June, APA can report on Friday.
In a statement issued on Wednesday, the IMF said the financing came after it reached a “Staff-Level Agreement on the Second Review of the Extended Credit Facility (ECF) for Ethiopia”.
In July this year, the IMF announced that it had allocated $3.4 billion in ECF financing to Ethiopia over four years.
This arrangement followed the East African country’s implementation of macroeconomic reforms, including the depreciation of the Ethiopian birr—described by some as a “free fall” —and the introduction of a market-based foreign exchange regime.
“IMF staff and the Ethiopian authorities have reached a staff-level agreement on economic policies to conclude the second review of the four-year $3.4 billion ECF arrangement. Formal completion of the review by the IMF Executive Board would give Ethiopia access to financing of about $251 million,” the IMF announced in a statement.
An IMF delegation, led by Mr. Alvaro Piris, was in Addis Ababa from November 12 to 26, 2024, to evaluate Ethiopia’s progress in meeting the conditions attached to the ECF arrangement. The IMF appears satisfied with the progress, granting Ethiopia access to $251 million.
The IMF team also praised the progress of Ethiopia’s reform programs, stating that the staff-level agreement requires approval from its management and executive Board.
Mr. Piris clarified this in a statement issued following the mission to Ethiopia, indicating that the agreement “is subject to approval by IMF management and the Executive Board in the coming weeks.
MG/as/APA