The International Monetary Fund has approved the immediate disbursement of around $261 million to Ethiopia, following an agreement in principle with private bondholders to restructure sovereign debt.
The payment lifts total IMF support to approximately $2.2 billion under a $3.4 billion programme agreed in July 2024.
Key developments
• The IMF cited progress in foreign exchange market reforms, monetary policy modernisation, and fiscal revenue mobilisation.
• Nigel Clarke, IMF Deputy Managing Director and Executive Board Chair, said macroeconomic outcomes have exceeded expectations.
• The funds are expected to support the birr, which has lost nearly two-thirds of its value since being floated.
• Ethiopia recently reached a preliminary deal with private creditors to restructure a $1 billion bond defaulted on in 2023.
Debt talks under the Common Framework remain ongoing, with financing assurances judged consistent with IMF requirements.
ℹ️ Bloomberg
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