The ECF arrangement was approved by the IMF Executive Board on July 29, 2024, for a total amount of US$3.4 billion (SDR 2.556 billion)
WASHINGTON D.C., United States of America, May 30, 2025/APO Group/ --
- IMF staff and the Ethiopian authorities have reached staff-level agreement on economic policies to conclude the third review of the four-year US$3.4 billion Extended Credit Facility arrangement. Once approved by the IMF Executive Board, Ethiopia will gain access to about US$260 million in financing.
- Ethiopia's macroeconomic performance has exceeded program expectations, with better-than-forecast results for inflation, export growth, and international reserves.
- Maintaining reform momentum remains essential for consolidating recent gains, correcting macroeconomics imbalances, restoring external debt sustainability, laying the foundations for high, private sector-led growth, and ensuring the success of Ethiopia’s homegrown reform agenda.
A staff team from the International Monetary Fund (IMF) led by Mr. Alvaro Piris, visited Addis Ababa from April 3 to 17, 2025, to discuss the 2025 Article IV consultation and the third review under the Extended Credit Facility (ECF). Discussions continued at the Spring Meetings in Washington DC, April 21-28, and subsequently. The ECF arrangement was approved by the IMF Executive Board on July 29, 2024, for a total amount of US$3.4 billion (SDR 2.556 billion). Subject to approval by the IMF Executive Board, the third review will make available about US$260 million (SDR191.7 million), bringing total IMF financial support under the ECF arrangement so far to about US$1,849 million (SDR1,406.4 million).
Today, Mr Piris issued the following statement:
“The IMF staff team and the Ethiopian authorities have reached staff-level agreement on the third review of Ethiopia’s economic program under the ECF arrangement. The agreement is subject to the approval of IMF management and the Executive Board in the coming weeks. A memorandum of understanding with official creditors is expected to be agreed ahead of the IMF Board’s consideration of the third review.
“The authorities’ policy actions in the first year of the program have yielded strong results. The transition to a flexible exchange rate regime has proceeded with little disruption. Measures to modernize monetary policy, mobilize domestic revenues, enhance social safety nets, strengthen state-owned enterprises, and anchor financial stability continue to show encouraging results. Macroeconomic indicators have performed better than expected, with substantially better outcomes than forecast for inflation, goods exports, and international reserves.
“Recent policy action should help deepen the FX market and tackle remaining distortions. While real exchange misalignment has been corrected and FX availability has improved from a year ago, the spread between the official and parallel market widened again in early 2025 and high fees and commissions persist. Actions that are being rolled out to enhance transparency, reduce costs, ease restrictions on current account transactions, and strengthen prudential regulation will help to improve the functioning of the FX market.
“Maintaining reform momentum will be key to consolidating gains and securing sustainable high growth. Continued tight monetary and financial conditions will be important for managing inflation and exchange rate expectations. Further revenue mobilization is needed to provide sustainable financing for critical development spending. Reforms to improve the business environment, ensure fair taxation practices, encourage foreign direct investment, and facilitate open dialogue with business will be important to secure private sector investment. Efforts to end the remaining elements of financial repression and develop the capital market will help to mobilize savings and support the efficient allocation of capital.
“The staff team is grateful to the authorities for the excellent policy discussions and their strong commitment to the success of the IMF-supported economic program. The team met with Minister of Finance Ahmed Shide, Governor of the National Bank of Ethiopia Mamo Mihretu, State Minister of Finance Eyob Tekalign, and other senior officials. Staff also had productive discussions with representatives of banks and businesses that are operating in a range of sectors and representatives of civil society.”
Distributed by APO Group on behalf of International Monetary Fund (IMF).
This will not change any thing; yes it is great the publicity, but this invitation is general invitation for all Somalia that is why they invited other ministers from Somalia. I only hope Somaliland decline this invitation because it will not bring us closer to recognition. In political view, we are taking step back and if we want to be a country we have to act like it. If USA or other countries would like to invite Somaliland and discus Somaliland issues they should not include other countries.
I think Somaliland should accept the invitation and send their representative in Washington to give our point of view. There is no need of our minister to sit in the same room with a traitor defector. The invitation is welcome and the rest will come without any reference to this meeting. Somalia exists only in minds of the beholder. Somaliland is a reality. Somaliland didhoo dilaac!
"somalia exsists only in the minds of the beholder"????
excuse me lady, i know you're very proud of your deposed, UNRECOGNIZED nation, but there's no need for you to talk like that about somalia which not only is a soverign nation but also a recognized country and RESPECTED entity of all somali territory. that is much more than i can say for a de facto, gang administrated inclave.
next time you decide to talk shit about somalia, remember the condition of your own state.
My god you should be on Comic view. Are you serious?
"Next time you decide to talk shit about somalia, remember the condition of your own state"
?
Bwaaaaaaaaaaaaaaaahahahahahahahahahah.
Dear Huriya
Your pen name means in arabic " freedom" but it contracts with what you write about somaliland, whose people gained their freedom from the past and present atrocities taking place in the places you call soverign & recognized state.
Please either change you pen name or stop the hatred you have.
long live my beloved somaliland and happy
i'm from Borama
This doesn't make any sense for visiting washington Ahdulahi Mohamed Dualeh he is one of the worst Minster of Somaliland because he said three years ago Somaliland is a Secular Country,so the reason that they call American to refresh the ideology of Secularism, so we are advising the Senators of Somaliland to look cariousity the outcome that meeting, and if he said again we are secular to take an action insha allaah we will see what will come and the Senators of somaliland they said we rule islamica sharia law and am congratulating the Somaliland Senators.
I think you are wrong about Minister Dualeh..He is a strong minister, I wonder if you have ever seen him in action. As for this session, it is better for Somaliland to be represented and to remind the US Congress, that there is a serious and democratic ally in the Horn of Africa.. As for Mohamed Oomar, it is a shame, a scion of a prestigious and well-known Somaliland patriot chasing after the dollar. I know his siblings Raqiya and Rageh, they must be devastated..Still, he joins along line of dollar-chasers, Buubaa, Sifir, Cusmaan Kaluun, Jaamac Yare, etc, they have not and will never hurt Somaliland.
Somaliland people and their government will do what we think is wright for us .
any comments you can reach me