May 1 , 2020

International Monetary Fund (IMF)

The Executive Board of the International Monetary Fund (IMF) has assented to 411 million dollars under the Rapid Financing Instrument (RFI) to address urgent balance of payments pressure and create fiscal space for essential pandemic-related expenditures.

The approved amount is equivalent to the 300.7 million of Special Drawing Rights (SDR), which is 100pc of Ethiopia's quota with the IMF. At the end of last year, the IMF had approved loans amounting to 2.9 billion dollars in response to its economic reform package. In response to the COVID-19 outbreak, the Board has also given a green light for the rephasing of disbursements under the Extended Credit Facility (ECF) and Extended Financing Facility (EFF) arrangements that have been in line to support the reform.

The IMF Executive Board has also approved Ethiopia's request for debt relief that falls under the IMF until October 13, 2020, of about 12 million dollars under the Catastrophe Containment and Relief Trust (CCRT), which covers the outstanding debt of Ethiopia with the Fund.

However, the relief could be stretched to April 13, 2022. A few weeks back, the IMF had downsized the prospective growth of Ethiopia for the current fiscal year by half from its previous projection of 6.2pc.

PUBLISHED ON May 01,2020 [ VOL 21 , NO 1044]

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