IMF Managing Director Kristalina Georgieva expressed support for Ethiopia's "homegrown economic reform agenda" following an "excellent meeting" with Ahmed Shide, Minister of Finance, and Mamo Mihretu, Governor of Central Bank.
Georgieva tweeted that she was impressed by their determination to advance domestic reforms. "Discussed how the IMF can support,” she added.
Ethiopia has been requesting financial assistance from the IMF since last year to help address several economic issues facing the country, including food insecurity, reconstruction needs after recent domestic conflicts, high inflation, and shortages of foreign currency and imports.
The request was made two years after the expiration of a $1.5 billion program due to the country's failure to complete its debt restructuring process with external creditors, which was necessary for disbursement. The IMF has reaffirmed last month it is in ongoing discussions about providing financial assistance in response to Ethiopia's request for a new financing programme to help address major economic challenges.
In a virtual press briefing on September 28, 2023, IMF Communications Director Julie Kozack said any program “would support the homegrown economic reform agenda to help tackle financial weaknesses and allow Ethiopia to achieve stronger growth.”
Kozack explained the IMF is reviewing reforms that could be supported by the requested new lending program to help stabilize the economy and improve living standards during difficult times. Both the tweet and discussions signal Georgieva and the IMF are considering backing Ethiopia's reform plans as it grapples with high inflation, shortages and food insecurity while debt relief talks remain stalled.