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The money will help Ethiopia cover its balance of payments and budget needs, bringing total IMF disbursements under the program to just over USD2.18 billion.
The International Monetary Fund has approved a new disbursement of 261 million US dollars for Ethiopia. The IMF has completed the fourth review of the country’s 48‑month Extended Credit Facility {ECF}.
The money will help Ethiopia cover its balance of payments and budget needs, bringing total IMF disbursements under the program to just over USD2.18 billion. According to the Fund, Ethiopia’s economy is performing better than expected, with strong growth, higher exports, improved revenue collection and rising foreign reserves, while inflation continues to ease.
The ECF program, worth about USD3.4 billion in total, is designed to support Ethiopia’s Homegrown Economic Reform Agenda, which aims to correct macroeconomic imbalances and lay the groundwork for private‑sector‑led growth.
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The IMF says Ethiopia has met all its key quantitative targets and most structural reforms. However, the federal budget for the current fiscal year deviated from earlier program assumptions, and the authorities have pledged new measures to keep the deficit manageable and spending in line with program goals.
The Fund is also urging Ethiopia to maintain tight monetary policy to keep inflation in check, continue reforms of the foreign exchange market, and push ahead with tax and customs changes to broaden the tax base.
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