IMF mission visits Ethiopia as Abiy pushes for mortgage deal
Ethiopia mentioned Thursday that an International Monetary Fund (IMF) employees mission was within the nation as work to safe a mortgage program from the multilateral lender gathers tempo.
Cash-strapped Addis Ababa has requested billions from the IMF to assist pay again debt and to stabilize the economic system hit by forex shortages and excessive inflation. Reports say that the determine is $3.5 billion.
But battle in its north and failure to safe commitments for debt aid from its collectors has seen talks with the Washington-based lender drag on for months.
In December, the Paris Club mentioned its supply to droop Ethiopia’s debt funds till 2025 may very well be withdrawn if the nation doesn’t safe an IMF mortgage by the top of March 2024.
Addis Ababa has already obtained ensures for debt aid from China, its largest bilateral creditor. But the nation faces strain to settle a $1 billion Eurobond due on the finish of this 12 months.
In December, Ethiopia did not pay a $31 million coupon, successfully getting into default standing. Zambia and Ghana have additionally defaulted on their money owed.
During its keep in Addis Ababa, the IMF mission is anticipated to check Ethiopia’s proposed financial program and to offer the lender’s ideas on the identical.
Analysts say that aside from considerations over political stability and the debt state of affairs, the IMF will press Ethiopia to devalue its forex and to undertake liberalization of the banking and telecom sectors.
