The IMF concluded its latest visit to Ethiopia by applauding the "significant progress" made in stabilizing the economy. Mission head Alvaro Piris highlighted important policy steps taken to curb inflation through fiscal austerity and monetary tightening.
An International Monetary Fund (IMF) mission, led by Alvaro Piris, was in Addis Ababa to hold discussions with Ethiopian authorities regarding their request for IMF support of the country's reform program. The visit, which took place from September 25 to October 3, 2023, marks an important step in Ethiopia's pursuit of economic stability and growth.
At the end of the visit, Piris issued a statement commending the progress made by Ethiopian authorities, stating, "The IMF team noted the important steps that have been taken to bring down inflation and stabilize the economy, including significant fiscal and monetary tightening. This has laid a critical foundation for the success of the Homegrown Economic Reform Agenda, which aims to fulfill Ethiopia's considerable economic potential."
The mission made good progress in discussing how the IMF could support the authorities' economic program, according to Piris. "Discussions will continue in the coming weeks to reach an agreement on a set of reforms for the requested program. We thank the authorities for their warm hospitality and the productive discussions," he added.
Ethiopia's request for IMF assistance stems from the need to address various economic challenges, including food insecurity, reconstruction needs after recent domestic conflicts, high inflation, and shortages of foreign currency and imports. Officials believe that the IMF's potential support would provide crucial financial assistance to overcome these challenges and pave the way for sustainable economic development.
In her post yesterday on X (formerly Twitter), IMF Managing Director Kristalina Georgieva expressed her support for Ethiopia's homegrown economic reform agenda following an "excellent meeting" with Ahmed Shide, Minister of Finance, and Mamo Mihretu, Governor of the Central Bank. Georgieva stated, "I am impressed by their determination to advance domestic reforms. We discussed how the IMF can provide support."
Ethiopia pins hopes on the IMF's debt verification report for the finalization of its debt restructuring request made to its external creditors, which has been critical of the IMF, alleging that the fund has taken a long time to produce a debt verification report, which is crucial for finalizing Ethiopia's debt restructuring request.