The Ethiopian government seeks to achieve remarkable progress in its negotiations with the International Monetary Fund, and the Ethiopian Ministry of Finance expressed its expectations to reach a preliminary agreement on the third review of the loan program submitted by the Fund during the next few days.
This progress is part of the ongoing efforts to enhance the Ethiopian economy in light of global financial challenges.
In a statement to “Reuters”, the Ethiopian Finance Minister, Ayoub Tiklain, confirmed that Ethiopia has made remarkable progress in implementing the economic reforms recommended by the International Monetary Fund. Among the most prominent of these reforms is the liberation of the national currency, which contributed to improving the exchange rate, as well as controlling inflation rates and increasing foreign exchange reserves.
For its part, the International Monetary Fund expressed its appreciation for the efforts made by Ethiopia in several fields, including inflation control, increased revenue from exports, and a remarkable improvement in its foreign exchange reserves.
The Fund explained that these reforms are part of a broader program to improve the economic situation, including the regular review of the program supported by the fund with a value of $ 3.4 billion.
Ethiopia’s debt structure
In the same context, Ethiopia’s efforts to improve its financial situation are continuing by restructuring its debts. In 2021, the country chose to restructure its external debt under the joint framework of the Group of Twenty, before it failed to pay its only bonds from the Eurobond in December 2023.
Last March, the Ethiopian government reached an initial agreement with its official creditors on the restructuring of debts worth $ 8.4 billion, but is still facing difficulty with international bond holders. While the talks in Washington with some of its billion -dollar international bonds were fruitful, the official talks are expected to start on the details of the restructuring next summer.
Ethiopia is expected to start talking with its creditors, including bond holders, this summer, with the aim of reaching a settlement on the restructuring of the country’s debts. These discussions are expected to include issues related to liquidity and the ability to pay debts.
Reports indicate that the Ethiopian government is in the process of holding talks with Chinese banks to secure the financing of important infrastructure projects, which reflects the government’s commitment to developing the vital economic sectors in the country.
These developments are part of the Ethiopia strategy to enhance its financial and economic situation in the face of local and international challenges. The review by the International Monetary Fund is an essential step towards enhancing the stability of the Ethiopian economy and ensuring its sustainability in the coming years.
Future challenges and prospects
Despite the progress made in reforms, Ethiopia faces great challenges, especially with regard to debt and providing the necessary financing to implement huge development projects. However, the reform measures followed by the government, as well as international support from institutions such as the International Monetary Fund, may help the country achieve long -term economic stability.
These agreements are an important step towards settling the financial challenges facing Ethiopia, and reflects the government’s commitment to achieving financial and development in the long run, according to Reuters.
