The International Monetary Fund (IMF) has given the green light to Ethiopias first loan review paving the way for a $340.7 million payout. This decision‚ made on 10/18/24 comes after the East African nation secured a $3.4 billion four-year financing program in July
Ethiopiaʼs recent reforms including floating its birr currency and putting its debt restructuring back on track‚ were key factors in obtaining the IMFʼs approval. The staff-level agreement reached in late September was subsequently submitted to the board for consideration
The Ethiopian government is aiming to make “tangible progress“ on its debt overhaul by 12/24 However‚ investors holding its $1 billion Eurobond have rejected a proposed writedown of about 18% – a potential roadblock in the nations financial recovery plans
The IMF has set an unusually rapid pace for reviewing Ethiopias current program. This approach allows for close monitoring of reform impacts especially on foreign exchange. The frequent reviews underscore the IMFs commitment to ensuring the programs success
In conclusion Ethiopiaʼs financial landscape is evolving rapidly with the IMF playing a crucial role in supporting and monitoring its progress. The nations efforts to restructure its debt and implement economic reforms will be closely watched in the coming months