Ethiopia Nears IMF Loan Review Deal, Prepares for Debt Talks

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Ethiopia Nears IMF Loan Review Deal, Prepares for Debt Talks

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Ethiopia expects to reach a preliminary agreement with the International Monetary Fund (IMF) in the coming days on the third review of its $3.4 billion loan program, according to State Finance Minister Eyob Tekalign. The IMF board is anticipated to approve the review by June, enabling a new disbursement to support Ethiopia’s ongoing economic reforms, including currency liberalization and debt management.

At the same time, Ethiopia plans to launch formal debt restructuring negotiations with bondholders this summer. While an agreement has been reached with official creditors, talks with private bondholders remain sensitive, with debates on whether Ethiopia’s challenges are related to liquidity or solvency.

The country is also in discussions with Chinese policy banks for concessional infrastructure financing and with the U.S. International Development Finance Corporation to support investment in key sectors like energy.

Source: “Ethiopia expects preliminary deal on IMF review within days, finance minister says” by Dawit Endeshaw, Reuters, April 28, 2025. Read the full article here.