IMF encourages formation of Ethiopia creditor committee

IMF encourages formation of Ethiopia creditor committee

IMFJuly 6 (Reuters) – The International Monetary Fund said on Tuesday it “strongly encourages the swift formation” of a creditor committee for Ethiopia to enable timely debt relief.

The formation of the committee will help Ethiopia “create fiscal space for development spending and lower the risk of debt distress rating to ‘moderate’ by reprofiling debt service obligations,” IMF spokesman Gerry Rice said in a statement. (Reporting by Rodrigo Campos; Editing by Leslie Adler)


Source of below statement is IMF

At a Glance

  • 2021 Projected Real GDP (% Change) : 2.0
  • 2021 Projected Consumer Prices (% Change): 13.1
  • Country Population: 97.175 million
  • Date of Membership: December 27, 1945
  • Article IV/Country Report: January 28, 2020
  • Outstanding Purchases and Loans (SDR): 524.55 million (February 28, 2021)
  • Special Drawing Rights (SDR): 8.56 million
  • Quota (SDR): 300.7 million
  • Number of Arrangements since membership: 8

Ethiopia: Financial Position in the Fund
as of May 31, 2021

Summary of IMF members’ quota, reserve tranche position, SDR holdings, outstanding credit, recent lending arrangements, projected payments due to the IMF, and historical transactions with the IMF.

I. Membership Status: Joined: December 27, 1945; Article XIV

II. General Resources Account: SDR Million %Quota
       Quota 300.70 100.00
       IMF’s Holdings of Currency (Holdings Rate) 684.17 227.53
       Reserve Tranche Position 7.51 2.50

III. SDR Department: SDR Million %Allocation
       Net cumulative allocation 127.93 100.00
       Holdings 7.76 6.07

IV. Outstanding Purchases and Loans: SDR Million %Quota
      Emergency Assistance 1/ 300.70 100.00
      ECF Arrangements 133.64 44.44
      Extended Arrangements 90.21 30.00

1/ Emergency Assistance may include ENDA, EPCA, and RFI.

V. Latest Financial Commitments:
     Arrangements:
Date of Expiration Amount Approved Amount Drawn
Type Arrangement Date (SDR Million) (SDR Million)
      ECF   Dec 20, 2019   Dec 19, 2022 1,202.80    133.64
      EFF   Dec 20, 2019   Dec 19, 2022 751.75    90.21
      ESF   Aug 26, 2009   Nov 22, 2010 153.76    153.76
     Outright Loans:
Date of Date Amount Approved Amount Drawn
Type Commitment Drawn/Expired (SDR Million) (SDR Million)
      RFI   Apr 30, 2020   May 04, 2020 300.70    300.70

1/ Undrawn outright disbursements (RFI and RCF) expire automatically 60 days following the date of commitment, i.e. Board approval date.

VI. Overdue Obligations and Projected Payments to Fund  2/
   (SDR Million; based on existing use of resources and present holdings of SDRs):
                                      Forthcoming                                      
      2021   2022   2023   2024   2025 
  Principal 75.18 165.39 103.57
  Charges/Interest 2.10 4.17 4.07 2.76 1.14
   Total 2.10 4.17 79.25 168.15 104.71
2/ When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.
VII. Implementation of HIPC Initiative:
Enhanced
 I.   Commitment of HIPC assistance  Framework
       Decision point date Nov 2001
       Assistance committed
       by all creditors (US$ Million) 1/ 1,982.20
             Of which: IMF assistance (US$ million) 60.85
                    (SDR equivalent in millions)        45.12
            Completion point date   Apr 2004
 II.  Disbursement of IMF assistance (SDR Million)
       Assistance disbursed to the member 45.12
             Interim assistance 10.28
             Completion point balance 34.84
       Additional disbursement of interest income 2/ 1.54
                  Total disbursements 46.66
1/ Assistance committed under the original framework is expressed in net present value (NPV) terms at the completion point, and assistance committed under the enhanced framework is expressed in NPV terms at the decision point. Hence these two amounts can not be added.
2/ Under the enhanced framework, an additional disbursement is made at the completion point corresponding to interest income earned on the amount committed at the decision point but not disbursed during the interim period.
VIII. Implementation of Multilateral Debt Relief Initiative (MDRI):
    I.       MDRI-eligible debt (SDR Million)1/ 112.07
                  Financed by: MDRI Trust 79.66
                  Remaining HIPC resources 32.41
    II.       Debt Relief by Facility (SDR Million)
                                  Eligible Debt                                  
Delivery
Date

GRA

PRGT

Total
January 2006 N/A 112.07 112.07
1/ The MDRI provides 100 percent debt relief to eligible member countries that qualified for the assistance. Grant assistance from the MDRI Trust and HIPC resources provide debt relief to cover the full stock of debt owed to the Fund as of end-2004 that remains outstanding at the time the member qualifies for such debt relief.
IX. Implementation of Catastrophe Containment and Relief (CCR):
Date of Board Decision Amount Committed Amount Disbursed
Catastrophe Date (SDR million) (SDR million)
  N/A   Apr 30, 2020 8.56    8.56
  N/A   Oct 02, 2020 4.50    4.50
  N/A   Apr 01, 2021 0.47    0.23

As of February 4, 2015, the Post-Catastrophe Debt Relief Trust has been transformed to the Catastrophe Containment and Relief (CCR) Trust.
_________________
Decision point – point at which the IMF and the World Bank determine whether a country qualifies for assistance under the HIPC Initiative and decide on the amount of assistance to be committed.
Interim assistance – amount disbursed to a country during the period between decision and completion points, up to 20 percent annually and 60 percent in total of the assistance committed at the decision point (or 25 percent and 75 percent, respectively, in exceptional circumstances).
Completion point – point at which a country receives the remaining balance of its assistance committed at the decision point, together with an additional disbursement of interest income as defined in footnote 2 above. The timing of the completion point is linked to the implementation of pre-agreed key structural reforms (i.e., floating completion point).
Prepared by Finance Department

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