The International Monetary Fund reached a staff‑level agreement with Ethiopian authorities on the fifth review of the four‑year $3.4 bn Extended Credit Facility (ECF) arrangement, unlocking approximately $468 million once the IMF Executive Board gives final approval.
The IMF staff team was led by Alvaro Piris and conducted an on‑site visit to Addis Ababa from 6 May to 20 May 2026, with subsequent virtual discussions.
The ECF arrangement was originally approved by the IMF Executive Board on 29 July 2024 for SDR 2.556 bn (≈ $3.4 bn). Completion of the fifth review will raise total IMF financial support under the programme to about $2.651 bn.
Ethiopia continues to implement its Homegrown Economic Reform Agenda, with output indicators, exports, foreign‑exchange reserves and government revenue improving through early 2026, while inflation has declined.
The war in the Middle East caused temporary trade disruptions, fuel shortages and sharp increases in imported fuel and fertilizer prices, but overall economic activity remains robust with only modest impacts on output growth and consumer‑price inflation so far.
The IMF highlighted rising risks to Ethiopia’s outlook due to global uncertainty and commodity‑price volatility stemming from the Middle‑East conflict, emphasizing the need for careful resource management.
The Fund stressed the importance of maintaining a tight monetary policy to anchor inflation expectations, enhancing the functioning and transparency of the foreign‑exchange market, and continuing progress in domestic revenue mobilisation and prudent expenditure management to sustain fiscal health.
Ethiopia is advancing toward a comprehensive external‑debt treatment; restructuring talks with official creditors are proceeding as expected, and negotiations with bondholders are ongoing.
