ADDIS ABABA, Ethiopia — The International Monetary Fund (IMF) announced on Friday that it has reached a staff-level agreement with Ethiopia on the third review of the country’s $3.4 billion Extended Credit Facility (ECF) arrangement. Pending approval by the IMF Executive Board, this agreement will unlock approximately $260 million in funding, bringing total disbursements under the program to about $1.85 billion.
The IMF commended Ethiopia’s economic reforms, particularly the transition to a flexible exchange rate regime, which has proceeded with minimal disruption.
According to the IMF, macroeconomic indicators such as inflation, exports, and international reserves have performed better than expected, reflecting the effectiveness of the country’s policy measures.
The staff-level agreement follows discussions held in Addis Ababa from April 3 to 17, 2025, and subsequent meetings during the IMF and World Bank Spring Meetings in Washington, D.C., from April 21 to 28.
The IMF noted that a memorandum of understanding with official creditors is expected to be agreed upon ahead of the Executive Board’s consideration of the third review.
Ethiopia’s ECF arrangement, approved by the IMF Executive Board on July 29, 2024, aims to support the country’s economic reform agenda, restore macroeconomic stability, and promote sustainable growth.
The program’s success is seen as crucial for Ethiopia’s efforts to address external debt challenges and foster private sector-led development.
The IMF Executive Board is expected to review and approve the third review in the coming weeks.
