IMF Reaches Staff-Level Agreement on a US$2.9 Billion Financing Package with Ethiopia

Filed under: News |

December 11, 2019

End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF’s Executive Board for discussion and decision.

An International Monetary Fund (IMF) staff team led by Ms. Sonali Jain-Chandra visited Addis Ababa from October 29 to November 8, 2019 to hold discussions on the 2019 Article IV Consultation for Ethiopia, and the authorities’ request for a three-year US$2.9 billion (SDR 2.1049 billion) financing package that could be supported by the IMF under its Extended Credit Facility (ECF) and Extended Fund Facility (EFF). Discussions with the authorities continued after the mission.

Ms. Jain-Chandra issued the following statement today on the staff-level agreement:

“The Ethiopian government and the IMF staff team reached preliminary agreement, subject to approval by the Fund’s Executive Board, on policies that could constitute the basis for Ethiopia’s new program supported by the ECF and EFF arrangements. The overall objective of the program would be to support implementation of the authorities’ Homegrown Economic Reform Program.

“The Fund-supported program would consist of five main pillars: (1) durably address the foreign exchange shortage and transition to a more flexible exchange rate regime; (2) strengthen oversight and management of state-owned enterprises to contain debt vulnerabilities; (3) strengthen domestic revenue mobilization and expenditure efficiency to create space for adequate poverty-reducing and essential infrastructure spending; (4) reform the financial sector to support private investment and modernize the monetary policy framework; and (5) strengthen the supervisory framework and financial safety nets.

“We will submit the program request to the Executive Board for its consideration.”

IMF Communications Department
MEDIA RELATIONS

PRESS OFFICER: MEERA LOUIS

PHONE: +1 202 623-7100EMAIL: MEDIA@IMF.ORG

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3 Responses to IMF Reaches Staff-Level Agreement on a US$2.9 Billion Financing Package with Ethiopia

  1. ETHIOPIA IS ABOUT TO BORROW $3 BILLION DOLLARS (NOT $3 MILLION DOLLARS) FROM THE IMF.

    Ethiopia will not be able to ever take out anymore loans if OR WHEN Ethiopia doesn’t pay back the loans in a timely manner per what the signed loan agreement says. Per the signed agreement Future Ethiopian leaders are doomed not to get or not to be able to borrow with the Ethiopian credit score staying in the worst forever, which is a great recipe for Ethiopia to be made nomore once and for all.

    To find out what really happens for messing with IMF Ethiopia does not need to look far, just take a look at what happened to countries such as Somalia who got attacked by proxy war for decades for failing to pay IMF’s debt since 1987 until now , look at what happened to the oil rich Sudan barely surviving with South Sudan disintegrated and Sudan sanctioned for long just because Sudan failed to pay IMF’s loans since 1984 until now , Zimbabwe kicking out the white farmers that retaliated by robbing the country dry since Zimbabwe didn’t pay IMF loans since 2001 till now.

    The sad part is all major organizations and resources in Ethiopia will be owned by IMF in the meantime, just within the time frame between now and until Ethiopia is made nomore.

    Prosperity party is still just a fairy tale, the electoral board didnot recognize Prosperity Party. It should be noted that this loan is the works of the totalitarian EPRDF which TPLF is a founding member of. The totalitarian EPRDF’s love for money is the roots of all evils.

    Beniomer
    December 12, 2019 at 12:29 pm
    Reply

  2. This fresh loan from IMF is a master stroke of Dr. Abiye Ahmed. This will speed up infrastructure projects and ease scarcity of FOREX.

    The loan sanction on the strength of peace beacons from Ethiopia under the leadership of Dr. Abiye.

    For prosperity to reign the country should have a leader who can bring all sections of society together ie unity in diversity.

    Now soonest Ethiopian birr should be devalued to 70 to a dollar so that more funds rush into Ethiopia under FDI and exports gets a boost.

    The importers are making a killing in profit as never before that slice be reduced by sharp devaluation.

    Ethiopia Tikdem. Dr. Abiye Ahmed Ekdem.

    Nitin N Varia
    December 12, 2019 at 7:41 pm
    Reply

  3. Nutin Virus :

    ETHIOPIAN BIRR SHOULD NOT BE DEVALUATED AT ALL!!

    Ethiopians are not to be pumped out by Abiy noway.
    100,000+ Ethiopian people died defending Badme with Meles signing Badme away in Algiers the next day.

    Devaluing birr is devalueing Ethiopian humans lives subjecting Ethiopians to be victimized by predators .

    Meles Zenawi devaluated birr and borrowed from foreigners more than any other leader in the history of Ethiopia, this trend need to get halted now because it is getting out if control.

    Any EPRDF government official that is without a crime should cast the first stone at their party’s EPRDF’s “leader” Abiy Ahmed now, if not it means all of EPRDF is no good and should be put in the same bin with TPLF.

    Meles Zenawi did all the crimes many are accusing Abiy of doing now , the only difference between Meles’s and Abiy’s crimes are Meles favored the “golden” tegrau Tigres , while Abiy favored the “kegna” Oromos including the jihadists. If people are Oromo even if they are serial killers , jihadists , serial rapists , aserial bank robbers … Abiy doesn’t bother them actually Abiy protects them by getting more funds from IMF to advance their causes.

    Wegid
    December 14, 2019 at 8:52 am
    Reply

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