Ethiopia secures USD3.4B financing program from IMF
Date
7/30/2024 5:45:55 AM
(MENAFN) On Monday, Ethiopia secured a new financing program from the International Monetary Fund (IMF), valued at approximately USD3.4 billion. This new four-year loan program is designed to bolster Ethiopia's economic reform agenda and support the country’s financial stability.
The agreement allows for the immediate disbursement of around USD1 billion, according to the IMF's announcement. This funding will provide a significant boost to Ethiopia's economic restructuring efforts. The approval of this program follows extensive negotiations between Ethiopia and the IMF, aimed at securing additional funding and restructuring the country’s debt.
As part of the agreement, Ethiopia has implemented several key reforms, including allowing its currency to float, which has led to a 30 percent devaluation of the Ethiopian birr against the US dollar. The IMF commended these measures, stating that the decision to adopt a market-determined exchange rate, lift current account restrictions, and modernize the monetary policy framework are crucial steps towards addressing macroeconomic imbalances and controlling inflation.
In addition to the IMF’s support, Ethiopia is expected to receive a broader financial package totaling USD10.7 billion. This package will be provided by the IMF, the World Bank, and other international creditors, further reinforcing Ethiopia’s financial stability and supporting its economic reforms.
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