The International Monetary Fund (IMF) has approved an immediate disbursement of approximately $248 million for Ethiopia as part of the second review of the Extended Credit Facility (ECF).
The IMF’s decision to release these funds will help Ethiopia address its balance of payments needs. The ECF agreement, totaling around $3.4 billion, aims to support the government’s economic reform program designed to correct macroeconomic imbalances and lay the foundation for private sector-led growth.
The IMF also noted that the National Bank of Ethiopia (NBE) has maintained tight monetary and financial conditions, reporting progress in modernizing the monetary policy framework.
Additionally, the international financial institution highlighted that Ethiopian authorities are continuing their efforts to restore debt sustainability and are taking measures to ensure proper debt treatment.
In July last year, the Ethiopian government launched macroeconomic reforms, notably marked by the liberalization of the exchange rate regime and the opening of the banking sector to foreign investors.
