The International Monetary Fund (IMF) announced that it has reached a staff-level agreement with the Ethiopian authorities on the fourth review of the country’s four-year USD 3.4 billion Extended Credit Facility, which will enable the Ethiopian government to receive about USD 261 million upon the approval of the executive board.
This will bring total financial support under the arrangement to about USD 2.134 billion.
Recently, Ethiopia hosted a visit by Nigel Clarke, Deputy Managing Director of the IMF, who met with Finance Minister Ahmed Shide, Central Bank Governor Eyob Tekalign (PhD), Planning and Development Minister Fitsum Assefa (PhD) , and reviewed progress under the ongoing IMF-supported program.
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In a statement, mission chief Alvaro Piris highlighted that progress under Ethiopia’s Homegrown Economic Reform (HGER) agenda “continues to produce favorable macroeconomic outcomes.” He pointed specifically to “accelerating growth since mid-2024, supported by strong gold, electricity, and agricultural production.” Piris added that other positive indicators include a “more than doubling in the value of goods exports, a decline in inflation, and strong growth in government revenue”.
He added that the authorities are taking steps to improve the functioning of the foreign exchange market, modernize monetary policy, mobilize fiscal revenue, and advance the financial regulatory agenda.
“Maintaining reform momentum will be key to consolidating macroeconomic stability and supporting growth and poverty reduction in the medium term,” he noted. According to him, a tight monetary stance remains appropriate to anchor inflation expectations, and continued action will be needed to enhance competition in the foreign exchange market and ensure prudent expenditure management.
On debt, mission chief Piris said efforts to secure a debt treatment are “advancing”. He stated, “A Memorandum of Understanding on key terms for a debt treatment between the Official Creditor Committee under the G20 Common Framework and the Ethiopian authorities was agreed in July 2025. The next step is to reach bilateral agreements with official creditors.”
