IMF gives Ethiopia $59 mln under shocks facility programme

June 11, 2010

NAIROBI (Reuters) – The International Monetary Fund said on Friday it had allowed Ethiopia to access an equivalent of about $58.7 million under its Exogenous Shocks Facility, to help counter effects of the global economic downturn.

IMF said Ethiopia had been successful in implementing policies to curb inflation and rebuild external reserves as agreed under an ESF-supported programme.

“The approval will enable Ethiopia to draw … about $58.7 million … bringing total disbursements under the arrangement to … about $166.2 million,” IMF said in a statement.

IMF said it expected Ethiopia’s economy to grow by 7 percent in 2009/10. It had earlier forecast an output of 7-7.5 percent this fiscal year (July-June), based on an assessment carried out in September.

“Overall, the negative impact of the global recession has not been as severe as expected. GDP growth is projected to ease to 7 percent in 2009/10,” it said in its statement.

The government forecasts a growth of about 10 percent for 2010. The International Monetary Fund predicts growth of over 5 percent.