The International Monetary Fund has reached a staff-level agreement with Ethiopia on the fourth review of its $3.4 billion Extended Credit Facility arrangement. This agreement paves the way for a $261 million disbursement, bringing total financial assistance to $2.13 billion. The IMF urged continued forex reforms and fiscal discipline to support economic stability.
The International Monetary Fund (IMF) has reached a staff-level agreement with Ethiopia on the fourth review of its Extended Credit Facility (ECF) arrangement, valued at $3.4 billion and approved in July 2024. This paves the way for a $261 million disbursement, pending approval by the IMF Executive Board in the coming weeks, bringing total assistance under the program to $2.13 billion—about 62 percent of the approved amount.
Ethiopia's government accessed debt relief support in July 2024 to restructure external debt. The IMF report notes progress under the G20 Common Framework to address debt sustainability, though challenges persist with a $1 billion Eurobond and disagreements among two major creditors on debt treatment amounts.
The IMF staff team, led by Alvaro Piris, visited Addis Ababa from October 20 to November 4, 2025 (Ethiopian calendar), holding discussions. The team met with Finance Minister Ahmed Shide, National Bank of Ethiopia Governor Eyob Tekalgn, and other senior officials. As Piris stated, “Maintaining a tight monetary policy stance remains appropriate to anchor inflation expectations and support price stability.”
Under the government's Homegrown Economic Reform Agenda, growth has accelerated since mid-2024, bolstered by strong performance in gold, electricity, and agriculture. Goods exports have more than doubled in value, inflation has moderated, and government revenue has expanded significantly. Authorities are advancing reforms to improve the foreign exchange market, modernize the monetary policy framework, strengthen revenue mobilization, and enhance financial regulations. The IMF emphasized continuing these efforts to foster private sector investment by strengthening the business climate, ensuring macroeconomic stability, and reducing poverty in the medium term.
