Ethiopia's creditors have extended the deadline for finalizing discussions with the International Monetary Fund (IMF) on a loan agreement.

The East African nation now has until the end of June to reach a deal, according to a source close to the Paris Club of creditor nations.

The IMF recently concluded talks in Ethiopia without reaching an agreement. This raised concerns as the Paris Club had previously linked continued debt relief for Ethiopia to securing an IMF loan by the end of March.
The extension provides some breathing room for Ethiopia, which defaulted on a USD 1 billion Eurobond payment in December 2023.

An International Monetary Fund (IMF) staff team led by Mr. Alvaro Piris visited Addis Ababa from March 19 to April 2, 2024, to hold discussions on the authorities’ request for IMF support for their reform program.

At the end of the visit, Mr. Piris issued the following statement: “Building on earlier discussions, the staff team made substantial progress towards establishing how the IMF could support the authorities’ economic program. Discussions will continue at the IMF/World Bank Spring Meetings later this month. We thank the authorities for their warm hospitality and the productive discussions.”

Source: Reuters and IMF