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.
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.