IMF and Ethiopia Make Progress in New Funding Talks

▪ Discussions to Continue after IMF Staff Concludes Visit to Addis

The International Monetary Fund (IMF) and Ethiopia are to hold another round of talks over IMF support for the African nation’s economic reform program after positive discussions in Addis Ababa.

An IMF mission led by Alvaro Piris concluded its 10-day long visit to Addis Ababa today.

The visit was aimed at holding discussions on the Ethiopian authorities’ request to the global lender for financial support for their reform program.

The East African nation has been hit by multiple shocks including drought, spillovers from the war in Ukraine, and internal conflicts.

The discussions between authorities and IMF staff have been focused on the reform plans and ways to help the country meet its challenges.

At the end of the visit, mission leader Piris said the IMF team has welcomed the government’s Homegrown Economic Reform Agenda (HGER II).

It is an “ambitious reform program that aims to address key macroeconomic vulnerabilities and unleash Ethiopia’s considerable economic potential,” Mission leader Piris said.

He noted that the discussions on IMF assistance for the program were positive, saying: “We made progress in discussing the scope for IMF support for this reform program.”

“Discussions will continue in Washington, DC, next week, in the context of the IMF-World Bank Spring Meetings, and in coming weeks,” he said.

“We thank the authorities for their warm hospitality and the productive discussions.”

The 2023 Spring Meetings of the World Bank and the IMF are scheduled to take place from April 10 to April 16.

Progress on the IMF program and Ethiopia’s request for debt relief under the Group of 20 Common Framework had been stalled due in part to the conflict in the northern part of the nation.

The two-year conflict ended after the government and the Tigray People’s Liberation Front (TPLF) signed a cessation of hostilities agreement last November.

The peace deal and “strong progress” in its implementation have been welcomed by the global lender prior to the IMF staff visit to Ethiopia.