The International Monetary Fund’s Executive Board has completed the fourth review of Ethiopia’s $3.4 billion Extended Credit Facility programme, clearing the way for an immediate disbursement of about $261 million to support the country’s balance of payments and budget financing needs. The approval followed an assessment of policy implementation and reform progress by IMF staff and Ethiopian authorities, according to Reuters.
The programme, approved in July 2024, underpins Ethiopia’s Homegrown Economic Reform Agenda, which targets macroeconomic stability through tighter fiscal discipline, stronger monetary policy and structural reforms aimed at unlocking private sector growth. With the completion of the fourth review, total IMF disbursements under the arrangement now exceed $2.1 billion, reflecting sustained compliance with key reform benchmarks, as reported by the IMF in its programme update.
The Fund said Ethiopia has made encouraging progress in areas such as revenue mobilisation, export performance and foreign reserve accumulation, while inflationary pressures have begun to ease. The IMF added that maintaining prudent monetary policy and pressing ahead with structural reforms will be critical to consolidating recent gains and supporting inclusive growth, according to its official statement.
Completion of the review is also expected to strengthen Ethiopia’s position in ongoing debt restructuring talks under the G20 Common Framework, with IMF officials noting that continued reform momentum will be essential to restoring debt sustainability and rebuilding investor confidence in the economy.
