The Executive Board of the International Monetary Fund (IMF) has approved a new disbursement of approximately USD 464 million to Ethiopia after completing the fifth review of the country’s (ECF) program.
The latest approval brings total IMF disbursements to Ethiopia under the four year financing arrangement to approximately USD 2.65 billion since the program was launched in July 2024. The ECF program, valued at about USD 3.4 billion at the time of approval, is designed to support Ethiopia’s economic reform agenda, address macroeconomic imbalances, and lay the foundation for private sector led growth.
The IMF indicated that Ethiopia’s economic reform program remains broadly on track, with the government meeting all quantitative performance criteria and most indicative targets under the arrangement. Strong export performance, increased tax revenue collection, and continued accumulation of foreign exchange reserves were cited among the key achievements recorded during the review period.
The new disbursement includes the advancement of roughly USD 200 million in financing to help Ethiopia manage the economic effects of the ongoing conflict in the Middle East. According to the IMF, the conflict has created a significant external shock for the country, particularly through higher fuel import costs and increased pressure on external financing needs.
The Fund noted that Ethiopia has continued to implement reforms aimed at improving the functioning of the foreign exchange market, strengthening monetary policy, enhancing competition in the banking sector, and increasing fiscal sustainability through revenue administration and expenditure management reforms.
The IMF also highlighted progress in Ethiopia’s debt restructuring efforts. Bilateral agreements have been reached with several official creditors, while negotiations with external commercial creditors have advanced significantly, including an agreement in principle with Eurobond holders.
Despite emerging external challenges, the IMF assessed Ethiopia’s macroeconomic performance as resilient and emphasized the importance of maintaining reform momentum to support economic stability, strengthen public finances, and sustain long-term growth.
Source: IMF
