ADDIS ABABA, Jan. 19 (Xinhua) -- The Executive Board of the International Monetary Fund (IMF) has approved an immediate disbursement of about 248 million U.S. dollars to Ethiopia to help the East African country meet its balance of payments needs.

The decision came after the IMF held its second review of the 48-month Extended Credit Facility (ECF) for Ethiopia, according to an IMF statement, the state-run Ethiopian News Agency reported Saturday.

The disbursement is a part of Ethiopia's ECF arrangement for a total of about 3.4 billion U.S. dollars, which was approved in late July last year.

The four-year financing package intends to support Ethiopia's Homegrown Economic Reform Agenda with the aim of addressing macroeconomic imbalances, restoring external debt sustainability, and laying the foundations for higher, inclusive, and private sector-led growth.

The statement noted that the country's foreign exchange market functioning has improved amid significant policy actions taken by the government. Progress in raising domestic fiscal revenues, strengthening state-owned enterprises, and anchoring financial stability is promising, while the modernization of the country's monetary policy framework is advancing.

The IMF's statement also stressed the need for Ethiopian authorities to continue their efforts to restore debt sustainability, expand social safety nets, and mitigate the impact of the reform on vulnerable people. ■