Discussions between Ethiopian officials and an International Monetary Fund (IMF) delegation in Addis Ababa have concluded without a financial agreement. The visit from the IMF aimed to support Ethiopia in managing its extensive external debt through a bailout, but no deal was reached.
The ongoing discussions between Ethiopia and the IMF aim to secure financing for the second phase of the Ethiopian Homegrown Economic Reform, through a bailout loan totaling 3.5 billion USD.
While the IMF team led by Alvaro Piris acknowledged significant progress during their two-week visit, , they did not finalize a staff-level agreement between March 19 and April 2, 2024. This agreement was a prerequisite set by bilateral creditors when they approved a temporary suspension of debt payments for Ethiopia in December 2023.
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However, reports suggest that disagreements and contentions have arisen between Ethiopian authorities and the IMF regarding the reform agenda. Among other issues, the IMF has been advocating for foreign exchange flexibility, limitations on off-budget spending, debt restructuring of state-owned enterprises, and tax reform.
Further discussions between the Ethiopian government and the IMF were scheduled to take place during the IMF/World Bank Spring Meetings in Washington late April.
