IMF ends Ethiopia visit, deal not yet secured
Posted: 03 Apr 2024, 06:34
(Reuters) - The International Monetary Fund concluded its visit to Ethiopia to discuss a request for IMF support on Tuesday without reaching an agreement, leaving the East African nation short of a commitment it made with its official international creditors.
"The team made substantial progress towards establishing how the IMF could support the authorities' economic program," and discussions will continue later this month in Washington, the IMF said.
But the Paris Club of developed creditor nations, which does not include China, said last year that an agreement to suspend Ethiopia's debt payments through 2025 could be voided if the country did not secure an IMF loan by March 31.
It was not clear whether Paris Club members would enforce that deadline. Ethiopia reached a separate debt-service suspension deal with China earlier in 2023.
Ethiopia has been without an IMF program since its last lending arrangement with the fund expired in late 2022.
"The team made substantial progress towards establishing how the IMF could support the authorities' economic program," and discussions will continue later this month in Washington, the IMF said.
But the Paris Club of developed creditor nations, which does not include China, said last year that an agreement to suspend Ethiopia's debt payments through 2025 could be voided if the country did not secure an IMF loan by March 31.
It was not clear whether Paris Club members would enforce that deadline. Ethiopia reached a separate debt-service suspension deal with China earlier in 2023.
Ethiopia has been without an IMF program since its last lending arrangement with the fund expired in late 2022.