IMF Nears Approval of $251m Loan to Ethiopia

Dec 1 , 2024


[ssba-buttons]

The International Monetary Fund (IMF) is close to approving a 251-million-dollar loan to Ethiopia, applauding "progress in the economic reforms," which saw the exchange rate shift toward a market-determined regime. IMF staff which recently visited Addis Abeba reached an agreement with the authorities to conclude the second review of Ethiopia's four-year, 3.4-billion-dollar Extended Credit Facility arrangement. The Fund’s Executive Board is expected to review and approve the agreement in the coming weeks. "Ethiopia's economic reform program, including the transition to a market-determined exchange rate, continues to advance well," said Alvaro Piris, head of the IMF mission to Ethiopia. "With macroeconomic stability supported by prudent policy and a so far muted foreign-exchange reform impact on inflation, conditions for economic growth in the period ahead appear promising. "Piris believes that the adoption of a market-driven exchange rate has begun to address long-standing foreign-exchange shortages with the spread between the official and parallel currency markets narrowing to below 10pc, after briefly widening in October. The authorities attributed the easing of foreign-exchange surrender requirements and increased activity in the nascent interbank foreign-exchange market to this improvement. The National Bank of Ethiopia (NBE) has also launched a domestic interbank money market, integrating the country's financial systems and enhancing liquidity management. However, it remains to be fully functional where trading has been paused after one transaction. "To ensure progress toward low and stable inflation in the medium term, it will be important to maintain overall tight monetary and financial conditions during the transition to interest rate-based monetary policy," said Piris in a statement he issued last week.issues.


Radar

Deposit Insurance Fund Grows to 15.1B Br, Signals Readiness for Crisis Response

Two years into its operations, the Ethiopian Deposit Insurance Fund (EDIF) has grown its asset base to 15.1B Br, reinforcing its role as a critical backstop for depositors and financial institutions alike. The Fund, established under a proclamation by the Council of Ministers, was designed to shield depositors in the event of bank or microfinance collapses. Since its inception, EDIF has focused on collecting premiums from member institutions, investing the funds, and building a system robust...


Radar

Rockefellers 100m Dollars Leap into Regenerative Lunches

As part of the UNFSS+4 High-Level Convening, a thematic session titled "Nourishing the Future through Regenerative School Meals" was held on July 26, 2025, at the Sheraton Addis on Taitu St. It brought together prominent figures including Ethiopia's former Prime Minister Hailemariam Desalegn, former First Lady Roman Tesfaye, and Kenya's First Lady Rachel Ruto. Organised by the Rockefeller Foundation, the event focused on overhauling child nutrition through regenerative agriculture. Sarah Farl...


Radar

Hijra Bank Backs Young Innovators with Awards, Loans

Hijra Bank has awarded five young Ethiopian innovators in the final round of its “Sirara” Creative Spark Awards, selected from over 27,000 applicants. The programme targets practical innovations in agriculture, sustainability, and appropriate technology. Top winner Milkias Ahmed (PhD) received a 300,000 Br prize and a 3 million Br interest-free loan for developing an organic soil conditioner from animal bones. Second and third prizes went to Yusuf Ali and Muhammad Juhar for a crop-harvest...