The International Monetary Fund has reached a staff level agreement with Ethiopia on the country’s fourth review under the Extended Credit Facility and Extended Fund Facility, paving the way for the release of around 261 million dollars once approved by the IMF Executive Board. The development was confirmed in an IMF statement issued on Tuesday, according to Reuters.
The IMF mission said Ethiopia has made progress on fiscal consolidation, monetary policy reforms and restructuring efforts aimed at restoring macroeconomic stability. The Fund noted that inflation has continued to ease and external pressures have moderated, although challenges remain in areas such as debt sustainability and foreign exchange shortages, according to the IMF update.
Ethiopia’s Ministry of Finance welcomed the agreement, saying it reflects the government’s commitment to difficult but necessary reforms to rebuild confidence and support economic recovery. The ministry added that the incoming funds will help strengthen reserves and improve budget support as the country continues reconstruction efforts in conflict affected regions, as reported by The Reporter Ethiopia.
The staff level agreement will now be submitted to the IMF Executive Board for final approval, which is expected in the coming weeks, according to Reuters.
