Ethiopia Bonds Jump After IMF Approves $3.4 Billion Program

  • Government expects about $10.7 billion in total financing, aid
  • Decision includes immediate $1 billion disbursement from IMF

Addis Ababa, Ethiopia skyline.

Photographer: Michele Spatari/AFP/Getty Images
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Ethiopia’s defaulted international bond jumped after the International Monetary Fund agreed to lend the country $3.4 billion over four years as part of an economic reform program, a key step that’s also expected to ease negotiations with creditors on restructuring its debt.

The decision will allow the immediate disbursement of about $1 billion, the fund said in a statement on Monday announcing the loan.