IMF approves $2.9bn financing package for Ethiopia

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The International Monetary Fund’s Executive Board on Friday approved a three-year $2.9 billion financing package to support Ethiopia’s economic reform program, the IMF said.

The agreement, supported by the Fund’s Extended Credit Facility (ECF) and Extended Fund Facility (EFF), “aims to support the authorities’ implementation of their ambitious reform agenda and catalyze concessional donor financing,” the IMF said in a statement.

The Ethiopian economic reform program would focus on addressing the foreign exchange shortage and transitioning to a more flexible exchange rate regime, while working to strengthen oversight and management of state-owned enterprises.

It would also work to free up domestic revenue for poverty-reducing and essential infrastructure spending; financial sector reforms to support private investment and modernize the monetary policy framework; and strengthening of the supervisory framework and financial safety nets, the IMF said.

Suzan O