Press Release: IMF Executive Board Completes First Review Under Ethiopia’s ESF Arrangement and Approves US$58.7 Million Disbursement
June 11, 2010Press Release No. 10/238
June 11, 2010
The Executive Board of the International Monetary Fund (IMF) approved today the first review of Ethiopia’s economic performance under the 14-month arrangement under the high-access component of the Exogenous Shocks Facility (ESF). The Executive Board decision was taken on a lapse of time basis1. The approval will enable Ethiopia to draw SDR 40.11 million (about US$58.7 million), bringing total disbursements under the arrangement to SDR 113.65 million (about US$166.2 million).
Ethiopia has been successfully implementing policies to reduce inflation and rebuild external reserves as agreed in the ESF-supported program. At end-2009, consumer price inflation had declined sharply to the single digits and international reserves recovered to just over 2 months of imports, helped by strong donor inflows and financing from the IMF. Overall, the negative impact of the global recession has not been as severe as expected. GDP growth is projected to ease to 7 percent in 2009/10. All of the quantitative performance criteria and indicative targets for end-December 2009 were met. The structural measures covered by the Fund-supported program were also implemented.
The second ESF review is expected to be considered this fall.
The ESF arrangement for Ethiopia was approved by the Executive Board on August 26, 2009 (see Press Release No. 09/289) to help Ethiopia deal with the effects of the global recession on its balance of payments.