Ethiopia Signs Up for IMF Deal - What's in Store?

column

It is not unprecedented for the International Monetary Fund (IMF) to lend an amount much more substantial than what is prescribed in its members' quota. But it is rare for it to extend a generous loan 700pc larger than Ethiopia's quota under its Special Drawing Right (SDR). At 1,000pc more than its quota, it was Argentina that had received a larger loan than Ethiopia.

The IMF and other multilateral creditors are indeed showing their vote of confidence in Prime Minister Abiy Ahmed's (PhD) administration for its political opening up and economic policy liberalisation. The flow of cash in foreign exchange is a tap at the back for pursuing the economic reform agenda, designed to correct internal and external imbalances. Abiy's international supporters seem to realise that the stakes in Ethiopia have never been higher.

...

AllAfrica publishes around 400 reports a day from more than 100 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.