IMF approves $411 Million in emergency funding for Ethiopia

The International Monetary Fund approved $411 million in emergency funding to help Ethiopia cope with the fallout from the coronavirus outbreak.

“Ethiopia is facing a pronounced economic slowdown and an urgent balance of payments need owing to the COVID-19 pandemic,” the IMF said in a statement.

Ethiopia will also get debt relief that the fund is extending to the poorest and most vulnerable countries.

A fall in exports and restrictions to curb the virus spread will slow growth and weaken external and fiscal accounts. The immediate priority is to increase spending on health care and provide emergency assistance, including food assistance, according to the fund.

“The COVID-19 pandemic has created severe health risks and weighed heavily on the Ethiopian economy. If the pandemic is not contained, it will put severe pressure on the health system with devastating social consequences,” IMF said.