Press Release No. 25/416

Washington, DC: A staff team from the International Monetary Fund (IMF) led by Mr. Alvaro Piris, visited Addis Ababa from October 30 – November 13, 2025, to hold discussions on the fourth review under the IMF’s Extended Credit Facility (ECF). Discussions continued subsequently; virtually, and in Addis Ababa during December 3 – 5, 2025. The ECF arrangement was approved by the IMF Executive Board on July 29, 2024, for an initial total amount of SDR 2.556 billion (about US$3.4 billion at that time). Subject to approval by the IMF Executive Board, the fourth review will make available about US$261 million (SDR191.7 million), bringing total IMF financial support under the ECF arrangement so far to about US$2,134 million (SDR1,598.1 million).

Today, Mr. Piris issued the following statement:

“The IMF staff team and the Ethiopian authorities have reached staff-level agreement on the fourth review of Ethiopia’s economic program under the ECF arrangement. The agreement is subject to the approval of IMF management and the Executive Board in the coming weeks.

“Progress under Ethiopia’s Homegrown Economic Reform (HGER) agenda continues, with favorable macroeconomic outcomes. Available indicators point to accelerating growth since mid-2024, supported by strong gold, electricity, and agricultural production. Goods exports have more than doubled in value, inflation has declined, and government revenue has grown strongly. The authorities continue to take steps to enhance the functioning of the foreign exchange market, modernize the monetary policy framework, mobilize fiscal revenue, and advance the financial regulatory agenda.

“Maintaining reform momentum will be key to consolidating macroeconomic stability and supporting growth and poverty reduction in the medium term. A tight monetary stance continues to be appropriate to anchor inflation expectations and support price stability. Continued action will be needed to enhance competition and improve efficiency in the foreign exchange market. Prudent expenditure management and sustained resource mobilization will be critical for fiscal sustainability. Encouraging private investment will require efforts to improve the business environment.

“Efforts to secure a debt treatment and restore debt sustainability continue to advance. A Memorandum of Understanding on key terms for a debt treatment between the Official Creditor Committee under the G20 Common Framework and the Ethiopian authorities was agreed to in July 2025. The next step is to reach bilateral agreements with official creditors.

“The staff team thanks the authorities for the good policy dialogue and their commitment to the success of the IMF-supported economic program. The mission met with Minister of Finance Ahmed Shide, Governor of the National Bank of Ethiopia Eyob Tekalign, and other senior officials. The team also had productive discussions with banks, private companies, and development partners.”