IMF approved a $261 million disbursement for Ethiopia

Immediate Funding Release: The IMF approved a $261 million disbursement following the fourth review of Ethiopia’s Extended Credit Facility, bringing total program funding to $2.183 billion.

Endorsement of Reforms: The Fund endorsed Ethiopia’s Homegrown Economic Reform Agenda, noting that all quantitative targets and most indicative goals have been successfully met.

Monetary and Forex Stability: The IMF recommended maintaining a tight monetary policy to control inflation and praised new rules that limit central bank intervention in the foreign exchange market.

Fiscal Discipline: Highlights include strong revenue mobilization and tax reforms, though the IMF emphasized the need to phase out fuel subsidies and protect social spending.

Debt Restructuring Progress: Significant progress was noted in debt negotiations under the Common Framework, which the IMF views as essential for restoring long-term debt sustainability.