November 16, 2010 / 12:13 PM / in 8 years

IMF gives Ethiopia $62.7 mln, final tranche of package

ADDIS ABABA (Reuters) - The International Monetary Fund (IMF) will give Ethiopia $62.7 million from its Exogenous Shock Facility, the final tranche of a $240.2 million package.

The lender said in a statement late on Monday that Ethiopia had successfully implemented good macroeconomic policies, such as bringing soaring inflation down and building international reserves to about 2.1 months of import cover.

“Inflation has continued to decline, reflecting monetary restraint and aided by favorable weather conditions,” the IMF said in the statement on its website.

“The mild impact of the global recession on the Ethiopian economy has allowed for better performance on the external targets.”

Ethiopia, one of Africa’s fastest growing economies, on Monday said year-on-year inflation was 10.6 percent in October, compared with 64.2 percent in July 2008.

The rate has been generally declining since the government stopped state borrowing and increased bank reserves.

The Horn of Africa country also devalued its currency by 16.7 percent in September, a move the IMF said would bolster Ethiopia’s competitiveness.

The fund forecasts Ethiopia’s economy will grow by 8.0 percent this year and 8.5 percent in 2011.

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