Tuesday, July 23, 2024
HomeEthiopian NewsIMF seems to go ahead with funding Abiy Ahmed's gov't 

IMF seems to go ahead with funding Abiy Ahmed’s gov’t 

IMF _ Ethiopia _ Borrowing _ Ethiopian News
Ethiopian Delegation under Ahmed Shide with IMF Director, Kristalina Georgieva (Photo : SM)

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Toronto – Senior International Monetary Fund(IMF) officials were in Ethiopia for nearly two weeks holding talks with top Ethiopian government officials, including Abiy Ahmed, on the issue of funding what they call “Ethiopia’s Ambitious reform program.” 

At the time, it was reported that the talk ended “without agreement” and that the meeting was to continue later this month. As it turns out, Ethiopian Authorities were already in the U.S. and held talks with the IMF director. 

Ahmed Shide, Minister for Finance, led the team and Governor of Ethiopia’s National Bank, Mamo Mihretu, was in it. The team will be spending days to continue “discussion” with the IMF. Ahead of their trip, the Ethiopian Prime Minister announced that his government is now ready to allow expatriate businessmen to engage in the import and export sector.  

Kristalina Georgieva, IMF Director, on Wednesday announced that she had a “good discussion” with the Ethiopian delegation. She said on her X (formerly Twitter)  page, 

“I met with @MoF_Ethiopia Minister Ahmed Shide and  @NBEthiopia Governor Mamo Mihretu and key advisors. We had a good discussion on prospects for 🇪🇹’s ambitious reform program and how we can support progress. Our teams will continue to work together in the days ahead.”

Under the guise of “home-grown economic reform,”  but with apparent pressures from  Bretton Woods institutions, Abiy Ahmed’s government has been introducing core neoliberal economic policies. In addition to opening the Telecom sector to expatriate private investors, his government has announced intent to open the banking sector to foreign investors. It was not discussed in the parliament but there is little doubt that Abiy Ahmed’s government could get it done easily in the parliament once the policy is ready. Recently,  he announced – and he does so on forums intended for different purposes – that he will be allowing foreigners to own property in the country. 

There has been a rumor that the IMF was pushing Abiy’s government for further devaluation of Ethiopian Birr. When he took power in 2018,  the U.S. dollar was trading for under 25 Ethiopian Birr, Now it is selling for well over 56 Ethiopian Birr. In the parallel market, one U.S. dollar is selling for more than 113 Ethiopian. 

The weeks to come will reveal whether the IMF will release the funding to Abiy. If so, it remains a question whether the IMF will publicly and fully disclose the conditions under which it will be funding the Ethiopian government that is waging war in the Amhara region of Ethiopia while a renewed war is looming involving Tigray People’s Liberation Front (TPLF) forces.  

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3 COMMENTS

  1. With that Anti-Fascist Umer Semeter incarnate and patriot H.E. Ahmed Shide on top of the finances I am confident that he will see to it that every dime of the IMF money is spent properly with IMF breathing over his shoulder. If some of you want to protest and if you pick this fund as your target, you are not for the people of those upright noble of our old country. You should rather gather up in front of that demon’s Russian embassies and consulates and ask him to stop dumping his AK-47’s, RPG and SU35’s that are being used to murder innocent citizens in that country. If you want to protest, do it standing in front of the Turkish and Emirate’s consulates and ask them to stop selling tools of wanton killing drones to desperate regimes. That is what you need to protest. Otherwise, shut up and let others think you are gone horses!!!!

  2. While skirmish are focusing our attention on the affairs concerning the old country we came from, CNN just reported that Israel has just begun defending itself comparatively targeting sites inside Iran. What is next? Expect the market to sink tomorrow in reaction to this latest development. Israel which is the only beacon of democracy in the entire region including The Horn of Africa has the right to defend itself. But let’s hope that this skirmish will not explode into a regional war. Middle East is awash with weapons of mass destruction and if anyone of them finds its back against the wall, they will not hesitate to use them. If those religious fanatics become desperate, they will not hesitate to set the entire Arabian Peninsula up in flames. This is getting more and more terrifying. Let’s hope and pray that things will not go that far.

    • Make that:

      While we are focusing our attention on the affairs concerning the old country we came from, CNN just reported that Israel has just begun defending itself comparatively targeting sites inside Iran.

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