The International Monetary Fund (IMF) announced the conclusion of its two-week visit to Ethiopia without finalizing a support program for the country's economic reforms.
An IMF team led by Alvaro Piris held discussions in Addis Ababa but said more talks are needed to establish all the terms for how the IMF could back Ethiopia's reform efforts.
It is a setback for Ethiopian authorities who had hoped to wrap up an IMF deal by now to help unlock debt relief from Paris and non-Paris club creditors.
"Building on earlier discussions, the staff team made substantial progress towards establishing how the IMF could support the authorities’ economic program," said Piris at the end of the visit.
The Spring Meetings of the IMF and World Bank from April 17-23, 2024 present Ethiopia's next opportunity to finalize the long-delayed agreement.
The annual gatherings bring together finance ministers, central bankers and other officials to discuss pressing global economic issues.
Currently, the debt repayment suspension Ethiopia obtained from Paris Club creditors hinges on an IMF agreement. In contrast, Zambia, another nation facing similar challenges like Ethiopia, last month reached deals with bondholders to restructure its sovereign debt after securing an IMF support program.
For Ethiopia, securing an IMF program at the Spring Meetings would also help pave the way for comparable debt relief it seeks from bondholders of its one billion dollar Eurobond.
