International Monetary Fund says its team is conducting technical work in Addis Ababa in preparation for a potential IMF-supported program for Ethiopia.
The country has been hit by multiple shocks including drought, spillovers from the war in Ukraine, and internal conflicts.
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The ongoing discussions with Ethiopian officials are focused on the reform plans and ways to help the country meet its challenges.
The Ethiopian government has requested the global lender for financial assistance, an IMF spokesperson confirmed.
Bloomberg, which first reported the IMF visit, said officials from the fund would last for 10 days.
The spokesperson has revealed the major talking points, saying:
“IMF staff have ongoing discussions with the authorities on the reform plans and how we can support their efforts to address humanitarian and economic challenges.
“We have received a request for financial assistance, and we are conducting the technical work to prepare for a potential program discussion.”
Progress on the IMF program and Ethiopia’s request for debt relief under the Group of 20 Common Framework had been stalled due in part to the conflict in the northern part of the East African nation.
The two-year conflict ended after the federal government and the Tigray People’s Liberation Front (TPLF) signed a cessation of hostilities agreement last November.
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The IMF welcomed Ethiopia’s strong progress towards restoring lasting peace and stability through the peace deal.
“Implementation has progressed well, including the restoration of humanitarian assistance and basic services in Tigray,” the spokesperson said.