IMF reaches staff level agreement on Ethiopia's fourth review, unlocks $261 million
The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., as IMF Managing Director Christine Lagarde meets with Argentine Treasury Minister Nicolas Dujovne September 4, 2018
The International Monetary Fund said on Wednesday it had reached a staff-level agreement with Ethiopia on the fourth review of a $3.4 billion lending programme, paving the way for the next disbursement of $261 million once the Fund's board signs off.
That disbursement would bring the IMF's total financial support to Ethiopia under its extended credit facility so far to about $2.13 billion.
The East African nation secured the bailout loan in July 2024 while the government was working to restructure its debts.
"Maintaining reform momentum will be key to consolidating macroeconomic stability and supporting growth and poverty reduction in the medium term," the Fund said in its review of Ethiopia's economic programme, while recommending a tight monetary stance and encouraging private investment.
The IMF executive board must review and endorse the agreement before the next loan tranche can be disbursed.
Ethiopia chose to overhaul its external debt under the G20's Common Framework initiative, and it defaulted on its sole Eurobond in late 2023.
It has since struck a deal to restructure its official debt with bilateral creditors but disputes with investors over the potential size of a debt writedown have snagged progress on reworking its $1 billion Eurobond.
On the restructuring process, the Fund said that efforts to secure debt treatment and restore debt sustainability were advancing.
