IMF Proposes Resilience & Sustainability Facility for Ethiopia

The International Monetary Fund (IMF) has proposed that Ethiopia utilize its Resilience & Sustainability Facility (RSF) to secure climate financing without adding significant pressure to public finances. The facility is specifically designed for low-income, climate-vulnerable nations facing structural balance-of-payments risks. It offers long-term loans with a 20-year maturity period and a 10.5-year grace period. According to the IMF, this approach could help Ethiopia mobilize additional concessional finance from development banks and private investors. The fund emphasizes that the goal is to establish robust institutional systems capable of absorbing recurring climate shocks, such as droughts and floods, rather than relying solely on emergency spending after disasters occur.