The lender’s executive board has approved the second review of Ethiopia’s $3.4 billion financing program, enabling a $250 million disbursement. The four-year program, initiated in July 2023, followed Ethiopia’s sweeping reforms, including floating its birr currency to address debt restructuring. The IMF commended progress in restoring debt sustainability and advancing debt treatment negotiations under the Common Framework. Ethiopia’s economy has outperformed expectations, with inflation pressures lower than anticipated and foreign reserves growing faster than projected. After expedited reviews, the IMF will now adopt a standard six-month review cycle. However, some critics, including World Bank staff, have questioned the IMF’s debt assessments.
Source: Reuters