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Ethiopia: IMF Closes Shop
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Addis Fortune (Addis Ababa)
25 March 2008
Posted to the web 25 March 2008
Tamrat G. Giorgis
Addis Ababa
Forced to bridge 400 million dollars in budget deficit, the International Monetary Fund (IMF) is closing shop in 30 countries across the world, including in Addis Abeba, some sources disclosed. However, it will only be IMF's office here that is due to be closed in Africa.
The news was delivered to the resident representative, Arnim Schwidrowski, three weeks ago, through a video conferencing, according to these sources. Mr. Schwidrowski was not available for comment because he has left for Washington D.C.
Ethiopia is a founding member of the IMF, an international finance organization incorporating 185 countries created in 1945, together with the World Bank. These two organizations were known as Bretton Woods Institutions. Unlike its sister organization which engages in development and poverty reduction projects, the IMF focuses on macro-economic stability and the finance sector.
Housed for many years in the same building where the World Bank is found, Werbek Building, in Africa Avenue, the IMF has maintained its office in Addis Abeba since it was re-opened in June 1993, following the fall of the military government in 1991.
Its latest office, located in Heritage Plaza, on Cameroon Road (in front of Bole International Hotel),has maintained a modest staff of an average six and has provided technical assistance to the Ethiopian government, in areas of macro-economic management. It has also conducted surveys of the finance sector.
"We no longer have a program with them," said a government official.
After having suspended programmes to Ethiopia in the early 1980s for a decade, the IMF began its re-engagement with the Ethiopian government with its unpopular Structural Adjustment Facility, worth 49.4 million dollars. This was followed by a three-year Extended Structural Adjustment Facility (ESAF); although the total programme was designed to provide Ethiopia with 88.4 million dollars, the total amount provided was only 29.4 million dollars divided into two disbursements. In 2001, the IMF signed an agreement of 148 million dollars with Ethiopia, in order to implement a two-phase programme on Poverty Reduction and Growth Facility (PDGF). This came to an end in 2007.
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IMF claims modest success from its programmes in Ethiopia, including in its contribution to boosting the country's international reserve from a little over 200 million dollars in the early 1990s to over 1.2 dollars this year; average tariff reduction went from 230pc during the Derg time to 35pc now. It attempted to persuade the government to create a competitive environment in the local finance sector as well as to introduce a market-oriented foreign exchange market.
IMF has claimed the reputation during its years in Ethiopia for pushing the Ethiopian government to liberalize the financial sector, and allow foreign interests to participate in equity contribution. This was one of the demands that put the Fund at odds with the government, for it was a demand never met by the latter.
There has not been any further programme since the end of PDGF, although consultations were held under Article IV. A government official disclosed that the IMF's decision to close its office here has yet to be officially communicated to the government. Sources, however, told Fortune that senior government officials have been informed of the decision by the Resident Representative.
The IMF closed the old office, opened new luxurious one, and then close immediately. Is this how they are suppose to teach ETHIOPIA how to run our business? spending the money from Ethiopian loan for IMF ambassador to live like a king in palace house? The story I hear is that the government tell IMF to go and IMF close office before government deport the IMF ambassador. whatever the case, GOODBYE AND GOOD RIDDANCE.
The IMF (which basically is a private usury money lender part of the Ashkenazi family operated by the CFR (Counicl Foreing Relation), even the World Bank together with UN are part of the big family- these organisations are part of the banking and insurance who promote fear and insecurity. These are the main organisations that sustain and finance warlords in order to keep the door open for them to loot and exploit resources- all in the name of economy development.
And the “credit crunch” will wipe them out of this planet one by one.
Greetings,
As usual I enjoy your analysis and commnents on VOA.
This note is more to ask you for your help rather than comment. Please refer to Ethiolion.com and clicl on " ATTadafi yeteqedesse flmia" Urgent Sacred Challenge.
Having not received a reply from the regieme and its unlikliness has made me continue the campaign by writing letters to variouos institutions. I have started with The UN Sec General for obvious reasons. I'm going to follow through to the IMF & World Bank. Now, here comes the succour I need from you -a list of institutions that... [Read Full Text]
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