The International Monetary Fund (IMF) staff team has reached a preliminary agreement on policies that could constitute $2.9 billion financing package for Ethiopia. However, the agreement is subject to approval by the Fund’s Executive Board.
In a statement, the IMF says that Ethiopia had requested a 3-year package supported under IMF’s Extended Credit Facility (ECF) and Extended Fund Facility (EFF).
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According to Ms Sonali, Ethiopia intends to use the funds for homegrown economic reform program.
Moreover, the program will focus on five main pillars;
- Durably address the foreign exchange shortage and transition to a more flexible exchange rate regime
- Strengthen oversight and management of state-owned enterprises to contain debt vulnerabilities
- Strengthen domestic revenue mobilization and expenditure efficiency to create space for adequate poverty-reducing and essential infrastructure spending
- Reform the financial sector to support private investment and modernize the monetary policy framework; and
- Strengthen the supervisory framework and financial safety nets.
Ms Sonali says that the team will submit the program request to the Executive board for consideration.
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