IMF extends $240.6 million loan to Ethiopia

WASHINGTON (Reuters) - The International Monetary Fund on Wednesday approved a loan of about $240.6 million to help buffer Ethiopia from the impact of the global recession.A disbursement of about $115 million would be made immediately, the IMF said in a statement.

Ethiopia has faced a turbulent external economic environment in the past two years stemming from sharp movements in import prices and then the global slowdown.
One of the world's poorest nations with an roughly $8 billion economy, Ethiopia has adopted an appropriate program to address the strains on the balance of payments and to keep inflation low, the IMF said.
The program calls for a continued tight fiscal stance, a slowing of the pace of monetary growth, and gradual real exchange rate adjustment, aided by a step depreciation of the birr on July 10, 2009, the IMF said.
"Prudent implementation of this program, accompanied by planned reform measures, will provide a sound macroeconomic environment for economic growth," the IMF said.