The International Monetary Fund (IMF) has completed its first review of Ethiopia’s $3.4 billion lending program, approving a $340.7 million disbursement, the IMF announced on Friday. This marks a significant step in Ethiopia’s economic reform efforts under the four-year program secured in July.
The financing arrangement follows key reforms by Ethiopia, including the floating of its national currency, the birr, and progress in debt restructuring. The country’s government aims to make notable strides in its debt overhaul by December, though some investors in its $1 billion Eurobond have opposed an 18% proposed writedown.
The IMF has planned an accelerated review schedule for Ethiopia’s program to closely track the effects of these reforms, particularly regarding foreign exchange.
