IMF and Ethiopia Agree on Economic Policies

WASHINGTON (Reuters) – International Monetary Fund staff and Ethiopia have reached an agreement on economic policies to conclude the first review of a four-year $3.4 billion loan arrangement, the IMF said on Friday.

The IMF stated that formal completion of the review by the fund’s Executive Board would grant Ethiopia access to approximately $345 million.

Implementation of Ethiopia’s economic reform program, including the adoption of a floating exchange rate, is progressing well, according to an IMF statement.

“Successful implementation of reforms will help strengthen Ethiopia’s macroeconomic stability, improve foreign exchange availability, and support sustainable economic growth,” the statement noted.

Ethiopia, Africa’s second-most populous country, secured the $3.4 billion financing program from the IMF in July.

The Horn of Africa nation, currently facing high inflation and recurring foreign currency shortages, became the third economy on the continent to default on its debt at the end of last year.