NAIROBI (Reuters) -The International Monetary Fund expects its board to consider the third review of Ethiopia’s $3.4 billion programme within the set out timeline, a spokesperson said, a key step for the country to advance its programme and receive cash from the fund.
Staff from the IMF visited the country in mid-April for an assessment, and Ethiopia’s government said it expected a staff-level agreement to be announced within days, but that announcement has not yet been issued.
“We anticipate that the IMF Executive Board will consider the third review this summer, consistent with original review schedule,” IMF Spokesperson Julie Kozack told Reuters. She did not comment on the status of the staff level agreement.
The projected approval by the board in June will trigger the release of a 191.70 SDR loan tranche (about $265 million) to the government, to support the East African nation’s sprawling macroeconomic reforms programme.
The reforms were a prerequisite for the IMF programme, which was secured at the end of last July, allowing Ethiopia to proceed with its external debt restructuring under the G20’S Common Framework initiative.
The government has since secured a preliminary agreement with its official creditors and formal talks with bondholders are expected to start in the coming weeks and months.
(Reporting by Rodrigo Campos; Writing by Duncan Miriri; Editing by Toby Chopra)
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