The International Monetary Fund’s Executive Board completed the fifth review of Ethiopia’s 48-month Extended Credit Facility, unlocking an immediate disbursement of about USD 464 million, equivalent to SDR 342.05 million. Total disbursements under the arrangement now amount to about USD 2.647 billion, including about USD 200 million in additional resources to help Ethiopia manage balance of payments and fiscal financing pressures linked to the war in the Middle East, especially higher imported fuel prices. The IMF said overall program performance was in line with commitments. All quantitative performance criteria and most indicative targets were met. The only noted shortfall was the government’s contribution to the Productive Safety Nets Program, which was below target because donor contributions were higher than expected, while overall support to beneficiaries still exceeded objectives. The IMF highlighted the need to maintain a tight monetary stance to anchor inflation expectations and pointed to ongoing efforts to improve foreign exchange market functioning, including partial easing of exchange restrictions, development of an interbank FX market and stronger competition among banks. It also cited strong tax revenue growth and fiscal outcomes, while stressing prudent expenditure management and revenue administration reforms to sustain fiscal sustainability and priority spending. The IMF also noted continued progress on debt restructuring, including bilateral agreements with official creditors, advances with several external commercial creditors and an agreement in principle with Eurobond holders. Priorities identified by the Fund include completing the debt restructuring process, phasing out fuel subsidies while protecting vulnerable groups, closely monitoring private credit growth, strengthening financial sector oversight and safety nets, and advancing National Bank of Ethiopia governance reforms including new independent board appointments and recapitalization.
International Monetary Fund2026-07-01
International Monetary Fund completes Ethiopia’s fifth review under Extended Credit Facility and approves immediate USD 464 million disbursement
The International Monetary Fund completed the fifth review of Ethiopia’s Extended Credit Facility, approving an immediate USD 464 million disbursement and bringing total disbursements to about USD 2.647 billion. The IMF said program implementation was broadly on track, with all quantitative performance criteria and most indicative targets met. It also called for continued tight monetary policy, further FX market reforms and completion of debt restructuring.