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The Ethiopian government has formally requested USD 12 billion in financing from the International Monetary Fund (IMF) and the World Bank. The funds are intended to support a comprehensive three-year economic program aimed at addressing Ethiopia's financial needs.
The requested amount will be obtained through a combination of fresh loans and debt restructuring schemes offered by these two prominent financial institutions.
With the anticipation that the United States Congress will soon lift sanctions imposed on the Ethiopian government, negotiations regarding debt cancellation and the implementation of a new IMF program are set to commence, according to Teklewold Atnafu, the economic advisor to the Prime Minister.
He emphasized the significance of reaching agreements on decisive pre-conditions during the negotiation process, which Ethiopia is prepared to carefully accommodate.
Teklewold told The Ethiopian Reporter, that, “The gap between our projections and theirs is narrowing. There will be preconditions attached to the financing, and the key point is negotiating and reaching agreements on those preconditions.”
One of the crucial negotiation points is the reform of Ethiopia's foreign exchange regime.
