(Bloomberg) -- Ethiopia’s official creditors have granted financing assurances to the country to help fast-track approval of a new loan by the International Monetary Fund’s executive board, according to people familiar with the matter. Financing assurances mean that bilateral creditors such as the Paris Club and China provided certainty that they will restructure their loans to Ethiopia in a way that’s consistent with the fund’s program. Creditor countries usually provide financing assurances after a staff-level agreement on a new program is publicly announced by the Washington-based IMF. The assurances are required per IMF rules for a loan to be approved by the fund’s executive board and kick off the disbursements. An IMF spokesman said that fund has made progress with Ethiopian authorities and development partners on a program, without commenting on financing assurances or a staff-level agreement.

Source: Ethiopian News July 18, 2024 20:50 UTC