The International Monetary Fund announced Friday the conclusion of the fourth review of its financial program with Ethiopia, a decision that will allow the payment of approximately $261 million to the Ethiopian government.
Awarded in 2024, the $3.4 billion loan program aimed to support an ambitious economic reform plan, including in particular an in-depth review of the country's external debt.
The program continues in a context of strict monetary discipline, deemed necessary by the Fund to support disinflation. The IMF teams and those of the Ethiopian government reached an agreement on this fourth review last month.
Meanwhile, the Addis Ababa government announced that it had reached a preliminary agreement with the holders of its unique billion-dollar Eurobond regarding its restructuring. This agreement remains subject to approval by the IMF and bilateral creditors, but already represents a significant step forward towards restoring Ethiopian debt sustainability, the Fund said.
Ethiopia, which defaulted on its Eurobond two years ago, is conducting its restructuring negotiations within the framework of the G20 Common Framework, which requires uniform treatment of all creditors. Last July, the country also finalized an agreement with its bilateral creditors, offering cash flow relief in excess of $3.5 billion.
