IMF Approves Ethiopia's $3.4 Billion Program Review

The International Monetary Fund (IMF) executive board met on January 17, 2025, to review Ethiopia's progress under its $3.4 billion Extended Credit Facility program, which could unlock an additional $250 million in funding. This review follows a staff-level agreement from November 2024 that recognized Ethiopia's significant advancements in implementing its economic reforms, including transitioning to a market-determined exchange rate. While the review did not confirm an agreement on debt restructuring with official creditors, it noted that key milestones had been achieved under the G20's Common Framework process for debt relief. Ethiopia is restructuring its $12.4 billion external debt, with the creditor committee co-chaired by China and France. The IMF's assessment indicated that Ethiopia's economy is performing better than expected, with inflationary pressures and currency reserves stabilizing. This financial support is critical for Ethiopia's ongoing efforts to restore fiscal sustainability and promote economic growth.