An IMF spokesperson said on Monday that IMF representatives are in Ethiopia this week conducting technical work in preparation for a prospective IMF-supported program for the East African nation.
The Ethiopian government has asked the IMF for financial support to help with its economic reforms, according to an IMF spokesperson. The spokesperson noted that the country had experienced numerous shocks, including drought, the COVID-19 pandemic, domestic strife, and the effects of Russia’s war in Ukraine.
“A potential program would support the authorities’ Homegrown Economic Reform program and help Ethiopia stabilise its economy so that it can meet its economic, humanitarian, and social challenges, create jobs, and reduce poverty,” the spokesperson said.
The spokesperson stated that the technical conversations this week are a continuation of continuing discussions on how to best handle humanitarian and economic concerns between the IMF and Ethiopian authorities.
According to reports, said officials from the global lender were expected to stay 10 days.
The “cessation of hostilities accord” was hailed by the IMF as a significant step towards establishing long-lasting peace and stability in Ethiopia. The IMF also praised how smoothly its implementation had gone, with Tigray once again receiving basic services and humanitarian relief.
The war in Tigray had slowed down progress on the IMF program and Ethiopia’s request for debt relief under the Common Framework of the Group of 20.
After vocally denouncing alleged crimes committed by Ethiopian soldiers and their supporters during the Tigray conflict, which claimed tens of thousands of lives before a peace agreement was struck in November, the United States, the IMF’s largest shareholder, is attempting to mend relations.