The International Monetary Fund (IMF) announced on Friday that its staff and Ethiopia have reached an agreement on economic policies to conclude the first review of a four-year, $3.4 billion loan program. Upon formal approval by the IMF Executive Board, Ethiopia will gain access to approximately $345 million in financing.
The IMF highlighted that Ethiopia is making significant progress in implementing its economic reform program, including the adoption of a floating exchange rate. These reforms are expected to enhance the country’s macroeconomic stability, increase foreign exchange availability, and promote sustainable economic growth.
Ethiopia, Africa’s second-most populous country, secured the $3.4 billion IMF loan in July. The nation, which faces high inflation and persistent foreign currency shortages, became the third African country in recent years to default on its debt at the end of last year.
