The International Monetary Fund (IMF) is set to decide whether Ethiopia will receive around $345 million in additional financing after reviewing the country's progress in implementing economic overhaul targets.
The IMF Executive Board meeting on October 18th will rule on disbursing fresh funds under Ethiopia's $3.4 billion loan program following the confirmation of satisfactory reform policies during a recent IMF mission.
"There was a mission to Ethiopia...This resulted in a Staff-Level Agreement on policies for the First Review," IMF Communications Director Julie Kozack told reporters, signaling funds could flow if momentum is maintained.Â
The Fund has affirmed that Ethiopia is making headway in implementing economic reforms supported by its large IMF financing package.
"The IMF Board approved the ECF arrangement on July 29th, 2024. About $1 billion was disbursed immediately after the board approved the program," Kozack said at an October 3rd briefing.
She explained that the $3.4 billion program aims "to fill an external financing gap, which is estimated at $10.7 billion through 2027-2028."
Kozack stated the staff-level deal showed policies were "satisfactory" for reforms to stabilize public finances and restore debt sustainability.
She said the Executive Board was scheduled for mid-October to consider further disbursements "subject to the Board's endorsement of continued progress."