ETHIOPIA: IMF DEAL WITHIN REACH DESPITE DEBT CONCERNS AND PERSISTENT INSECURITY

   Thu, 20 April 2023

Ethiopia is very close to securing a new IMF programme that would cover up to a third of the country’s budget shortfall for the next three years. A positive economic outlook and recent improvements to the exchange rate mechanism risk being overshadowed by renewed political instability and localised insecurity. If a fall-out with the federal government’s most important ethnic allies cannot be swiftly resolved, Ethiopia would face the risk of a fresh insurgency and perhaps even a coup at regional and federal level.

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