The International Monetary Fund (IMF) has completed the second review of Ethiopia's $3.4 billion financing program, granting a $250 million disbursement. This four-year program, launched in July 2023, was established in response to Ethiopia's major economic reforms, most notably the floating of its birr currency as part of efforts to tackle debt restructuring.
The IMF praised Ethiopia's achievements in restoring debt sustainability and advancing negotiations under the G20 Common Framework for debt treatments. According to the IMF, Ethiopia's economic performance has exceeded expectations, with inflationary pressures easing faster than anticipated and foreign reserves showing stronger-than-expected growth.
Following an accelerated review process during the early program stages, the IMF has now shifted to its regular six-month review timeline. Despite the positive outlook and the IMF's approval, some critics, including experts from the World Bank, have raised questions regarding the accuracy and transparency of the Fund's debt sustainability assessments.
Ethiopia's continued reforms and negotiations will be closely monitored as the country strives to solidify its economic recovery.
