Ethiopia Secures $261 Million IMF Disbursement After Fourth ECF Review
Ethiopia is set to receive $261 million in fresh IMF funding under the Extended Credit Facility (ECF). The IMF notes that the reform program is delivering favorable macroeconomic outcomes, including faster growth and lower inflation. With this disbursement, total IMF financing under the current arrangement will amount to roughly $2.13 billion.
The ECF agreement between Ethiopia and the IMF is designed to address the country’s macroeconomic imbalances and restore the sustainability of its public debt. The program remains a central pillar of Ethiopia’s broader reform strategy.
The $261 million inflow follows the IMF’s completion of the fourth review of the ECF-supported program, according to a statement published on Wednesday, December 10, 2025. Ethiopian authorities view the funding as crucial for stabilizing both external and fiscal positions.
This financing is expected to cover Ethiopia’s balance-of-payments needs and budgetary requirements, while supporting the Home-Grown Economic Reform (HGER) initiative. HGER targets correcting macroeconomic distortions and laying the groundwork for growth driven by the private sector.
IMF Deputy Managing Director Nigel Clarke remarked that progress under the HGER program continues, noting favorable macroeconomic indicators such as accelerated growth since mid-2024, supported by strong performance in gold, electricity, and agriculture. Exports have more than doubled in value, inflation has declined, and government revenues have risen sharply. He added that the new disbursement brings total IMF support under the arrangement to about $2.13 billion.
Even with an estimated economic growth rate of 8.1% for 2023/2024, Ethiopia still faces significant economic and social challenges. The country’s human development index sits at 0.38, and per-capita income remains around $1,020. Persistent inflation, roughly 17.5% at end-September 2024, and a continuing shortage of foreign exchange contribute to import pressures and constrain medium-term macroeconomic stability.
IMF officials encouraged Ethiopian authorities to press on with monetary, financial, and foreign-exchange reforms to bolster macroeconomic stability, curb inflation, and support private-sector-led growth. They stressed that maintaining reform momentum is essential.
Ethiopia entered a 48-month, $3.4 billion ECF arrangement with the IMF on July 29, 2024, marking a key step in the country’s external debt restructuring. External debt stood at about $28.5 billion at the end of 2023.
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