Borkena
Toronto – The International Monetary Fund (IMF) on Wednesday announced that a “Staff-Level Agreement on the Second Review of the Extended Credit Facility (ECF) for Ethiopia” has been reached.
In July of this year, the IMF announced that it had allocated $3.4 billion in ECF financing to Ethiopia over four years. This arrangement followed Ethiopia’s implementation of macroeconomic reforms, including the depreciation of the Ethiopian birr—described by some as a “free fall” —and the introduction of a market-based foreign exchange regime. When this new exchange rate system was introduced, the U.S. dollar was exchanging for 57 Ethiopian birr; it is now trading for over 122 birr, reflecting also the inflation and the skyrocketing cost of living that is said to be unbearable for the absolute majority of Ethiopians.
Prime Minister Abiy Ahmed’s administration presented these reforms as a “homegrown economic growth plan,” although critics argue there is little evidence to substantiate the “homegrown” label. The plan primarily focuses on privatization and market liberalization, with minimal regulatory frameworks.
An IMF delegation, led by Mr. Alvaro Piris, visited Addis Ababa from November 12 to 26, 2024, to evaluate Ethiopia’s progress in meeting the conditions attached to the ECF arrangement. The IMF appears satisfied with the progress, granting Ethiopia access to $251 million.
“IMF staff and the Ethiopian authorities have reached a staff-level agreement on economic policies to conclude the second review of the four-year $3.4 billion ECF arrangement. Formal completion of the review by the IMF Executive Board would give Ethiopia access to financing of about $251 million,” the IMF announced in a statement on Wednesday.
The IMF team also praised the progress of Ethiopia’s reform programs, stating:
“Implementation of Ethiopia’s homegrown economic reform program, including adoption of a market-determined exchange rate, continues to advance well. Foreign exchange shortages have eased substantially, and spreads between the official and parallel markets have again fallen below 10 percent.”
The staff-level agreement requires approval from IMF management and its Executive Board. Mr. Piris clarified this in a statement issued following the mission to Ethiopia:
“The agreement is subject to approval by IMF management and the Executive Board in the coming weeks. Upon completion of the Executive Board review, Ethiopia would have access to SDR 191.70 million (equivalent to about $251 million). Future reviews will be on a six-monthly schedule.”
Ethiopian activists have been voicing concern over the credit arrangement in light of what appears to be unending war in the Amhara region of Ethiopia. IMF has not remarked about it.
__
Join our Telegram Channel : t.me/borkena
Like borkena on Facebook
Add your business to Ethiopian Business Listing / Ethiopian Business Directory
Join the conversation. Follow us on X (Formerly Twitter) @zborkena to get the latest Ethiopian News updates regularly. Subscribe to YouTube channel To share information or for submission, send e-mail to info@borkena.com
Hey Ethiopia! When you gonna pay the 250 billion in US dollars you owe Eritrea? That is the reparation amount as established by international laws when one country invades another country. That is the amount assessed by the world’s best legal and financial experts now teaching at the University of Piccolo Roma. The reparation was determined at a fair market value for the destruction and deaths you caused when you invaded Eritrea at Keren in 1941 and the war you waged on Eritrea in 1952, 1962 and between the years 1962-2002. In all, you have killed 11.6 million Eritreans and I have the names of every one of the victims. Then, between 2018 and 2024 you have been taking away the baggage of my travelers who came to your country to relax and recharge. So what if you found fat gold bars, platinum, 10lbs of washed coffee in each luggage? Let me tell you something. My Eritreans are entitled to do anything in your country. Anything. What’s your problem, Kunta? So, Ethiopia, you are on the hook with the 250 billion in US dollars you owe Eritrea. Start coughing it up now. Otherwise, you know what I signed with el-Sisi and my Arab friends at Villa Mogadishu. It won’t take me a week to get to Addis/Finfinne and hand over the GERD Dam to my master benefactor since 1960 in Al-Qahirah. You’re toast!!!
Ethiopia! You have the following options to avoid obliteration by the mighty army from Piccolo Roma
1) You can pay off your debt to Eritrea of 250 billion US dollars by 10 yearly interest free installments of 25 billion each.
2) Supply Eritrea 1,000 MW of electric free of charge for ever. You will be required to build the power line and all the electrical wiring to every home inside Eritrea.
3) Ship all of your gold, platinum, diamond and all other minerals to Piccolo Roma free of charge.
4) All your agricultural products should be exported to Eritrea for the next 75 years to commemorate your 1st invasion at Keren in 1941.
That’s all you have to do to avoid humiliation. I need to hear from you about this final ultimatum by noon tomorrow in time for Black Friday.