The International Monetary Fund executive board agreed to immediately disburse about $261 million to Ethiopia after the nation reached an agreement in principle with bondholders to restructure its debt.
The new tranche brings the total the Horn of Africa nation has received from the Washington-based lender to about $2.2 billion since it signed a $3.4 billion program in July 2024, the IMF said in a statement Friday.
“Measures to enhance the foreign exchange (FX) market, modernize monetary policy, mobilize fiscal revenues, and advance the financial regulatory agenda continue to show encouraging results, with better-than-anticipated macroeconomic outcomes,” Nigel Clarke, IMF deputy managing director and chairman of the board, said in the statement.
The new inflows will support the birr, which has lost almost two-thirds of its value against the dollar since the currency was floated in the month the IMF program was agreed.
Ethiopia reached an agreement in principle with private creditors earlier this month to rework a $1 billion bond it defaulted on in 2023.
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