Washington, DC: The Executive Board of the International Monetary Fund (IMF) today completed the fourth review of the 48-month Extended Credit Facility (ECF) for Ethiopia. Revenue mobilization has been strong, and recent tax policy reforms bode well for broadening the tax base and raising revenue potential. Recently-approved increases in reserve requirements maintain tight liquidity conditions, while a phased exit from the cap on private credit growth would help make further progress toward an interest-rate based monetary policy framework while avoiding an overly rapid expansion of credit. Interbank market and repo market development will support monetary policy transmission. Tax and customs administration reforms will be key to broadening the tax base to maximize tax policy reform gains and foster a more stable taxation environment.

Source: Ethiopian News January 16, 2026 19:57 UTC