IMF officials and the Ethiopian government have agreed on the second review of the country’s $3.4 billion financing program.
IMF officials and the Ethiopian government have reached an agreement on the second review of the country’s $3.4 billion financing program.
The East African country secured the program in July, just hours after following one of the IMF’s key recommendations by allowing its currency to float.
In a statement, the IMF noted that, following the completion of the IMF Executive Board’s review, Ethiopia could access a payment of around $251 million.
The statement reads, “Ethiopia’s economic reform program, which includes the transition to a market-determined exchange rate, continues to make good progress.”
“Prudent Policy”
“With macroeconomic stability supported by prudent policies and the limited impact of the exchange rate reform on inflation so far, the outlook for economic growth in the coming period looks promising.”
The first review of the program, focused on issues such as foreign exchange reserves and external debt, was agreed upon with the staff in September and approved by the Executive Board last month.
The IMF, which has conducted an unusually fast review of its program to closely monitor the effects of reforms, including the liberalization of the exchange market, is now moving to a six-month review schedule.
