The International Monetary Fund has outlined a series of demanding conditions for the Ethiopian government to access funds under its Extended Credit Facility (ECF) program.

According to the organization, these conditions are intended to guide Ethiopia towards economic stability but come with critical deadlines and potential consequences for non-compliance.

Here are some of the key conditions:

Continuous conditionality: Ethiopia must adhere to specific financial practices, including avoiding restrictions on international payments, maintaining a unified currency system, and refraining from entering into “certain bilateral payment agreements.” However, the IMF didn’t specify the “bilateral payment agreements” prohibited for the new BRICS member state.

Legal reforms: By the end of December 2024, the National Bank of Ethiopia (NBE) must submit draft legal amendments to parliament, focusing on modernizing governance, enhancing decision-making, and improving accountability and transparency within the NBE.

Phased disbursement: The IMF has proposed a phased disbursement of funds, with specific amounts released upon successful completion of performance criteria and IMF reviews. The first disbursement is scheduled for September 10, 2024, with further releases contingent on continued compliance.

Ethiopia is currently implementing a macro-economic reform, which was described by the country’s Investment Commissioner Hanna Arayaselassie as a “big change” in order to attract more foreign direct investments.