A glimpse of the International Monetary Fund’s HQ in D.C., U.S., captured on April 8, 2019. Photo credits © REUTERS/Yuri Gripas/File Photo. Inquiries for rights, contact us.
Good news from the IMF! The Ethiopian government gets a green light for the $3.4 billion aid package, with $340.7 million unlocked. The folks at the IMF board gave a thumbs-up last Friday for the initial review of the deal.
This backing stems from Ethiopia’s summer deal, culminating in a four-year financial arrangement. The country’s journey towards boosting its fiscal health included bold reform moves, such as letting the birr find its own value and steering its debt restructuring efforts back on course.
In late September, Ethiopia and the IMF reached a handshake agreement at the staff level, soon after passed to the board for judgment.
With eyes set on a debt overhaul by year-end, the Ethiopian authorities are pursuing “real progress.” However, not everyone’s on board. Bondholders of the whopping $1 billion Eurobond balked at the idea of an 18% haircut on their investments.
The IMF lined up a speedy schedule for Ethiopia’s program assessments, focusing on the currency’s ripple effects in particular.
Journalistic input by Gursimran Kaur and Duncan Miriri, with editorial tweaks by Leslie Adler.
Edited by: Ali Musa
alimusa@axadletimes.com
Axadle international–Monitoring
