Ethiopia’s Abiy sees $10.5 billion from IMF, World Bank talks

Ethiopia’s Abiy sees $10.5 billion from IMF, World Bank talks

Ethiopia’s ongoing discussions with the International Monetary Fund and the World Bank may lead to $10.5 billion of funding, Prime Minister Abiy Ahmed said.

“We have been negotiating with the IMF and World Bank on a wide range of issues,” Abiy told lawmakers in the capital, Addis Ababa, on Thursday. “When this process comes to a successful conclusion, and the reform is approved, we will receive $10.5 billion in the coming years.”

Ethiopia defaulted on its debt in December, after failing to pay a $33 million coupon on a $1 billion eurobond that matures at the end of this year. It’s in talks with the IMF about a bailout program that’s key to restructuring its loans, which stood at $28.5 billion at the end of 2023.

The discussions with the multilateral lenders are currently focused on the timing of the implementation of reforms by the government, Abiy said.

“There are areas we think should be reformed now, and there are things we believe should be delayed,” he said. “If all these suggestions get accepted and we agree, there is an opportunity ahead of us. This reform agenda will play a huge impact in alleviating the debt burden on the country.”