IMF, Ethiopia reach staff agreement on second programme review
Adds quotes from IMF statement in paragraphs 4-5, more context and detail on future reviews in 6-7
NAIROBI, Nov 27 (Reuters) -International Monetary Fund staff and Ethiopia's government have reached agreement on the second review of the country's $3.4 billion financing programme, the IMF said on Wednesday.
The East African country secured the programme in July, hours after it followed one of the IMF's key recommendations and floated its birr currency ETB=.
Upon completion of the review by the IMF's Executive Board, Ethiopia will have access to a disbursement of roughly $251 million, the IMF said in a statement.
"Ethiopia's economic reform programme, including the transition to a market-determined exchange rate, continues to advance well," the statement said.
"With macroeconomic stability supported by prudent policy and a so far muted FX reform impact on inflation, conditions for economic growth in the period ahead appear promising."
The first programme review, which focused on aspects like foreign exchange reserves and external debt, was agreed with staff in September and approved by the board last month.
After unusually fast reviews of Ethiopia's programme to date that were aimed at closely monitoring the impact of reforms including the liberalisation of the foreign exchange market, the IMF is now moving to a six-month review schedule.
Reporting by Hereward Holland. Additional reporting by Gursimran Kaur. Writing by Duncan Miriri. Editing by Alexander Winning and Mark Potter
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