IMF to extend 100 percent debt relief to Ethiopia
23/12/2005 (WIC) - ADDIS ABABA – The International Monetary Fund (IMF) has approved 100 per cent debt relief to Ethiopia, the Office of the IMF Resident Representative in Ethiopia said in a statement issued yesterday.The debt relief was approved by its Executive Board under the Multilateral Debt Relief Initiative, the statement said. “As part of the Initiative, the IMF will provide 100 per cent debt relief on all debt incurred by Ethiopia to the IMF before January 1,2005 that remains outstanding. This amounts to approximately 161 million USD, or 114 million USD excluding remaining assistance under the Heavily Indebted Poor Countries (HIPC) Initiative,” it added.
According to the statement, the debt relief should become available in early January as soon as the remaining consents of the contributors to the PRGF Trust Subsidy Account have been received. The international community has made these additional resources available to help Ethiopia make progress toward its Millennium Development Goals (MDGs), the statement said.
“Ethiopia has qualified for IMF debt relief because of its overall satisfactory recent macroeconomic performance, progress in poverty reduction, and sound public expenditure management. In particular, Ethiopia has recorded two years of high economic growth, and rapidly expanding exports, while containing inflationary pressures.” the statement said. Commitment to adjust policies in response to emerging macroeconomic pressures also provides assurance that macroeconomic stability will be maintained.
In addition, efforts to strengthen cash management systems and improve internal control and audit are underway. Performance in these areas provides assurance that resources made available under the Multilateral Debt Relief Initiative will be used effectively,” it said.
“The IMF looks forward to working with Ethiopia to help it develop a strong and stable economy and to make sustained progress toward the MDGs,” the statement affirmed.
