IMF and World Bank have announced financing agreements worth around $20 billion with Ethiopia.
On Monday, the executive board of the International Monetary Fund (IMF) approved a four-year extended loan service (ECF) that will support the implementation of the government’s domestic economic improvement agenda and the amount of $3.4 billion for Ethiopia, to solve the macro-economic balance struggle and lay the foundation for growth led by the private sector. Read more…
The decision of the executive board will allow the release of $1 billion immediately that will help Ethiopia meet its needs related to the balance of payment and support the budget.
Today, the World Bank announced several support frameworks to support the indigenous economic reform that Ethiopia is carrying out in a statement titled the Ethiopia First Sustainable and Inclusive Growth Development Policy Operation.
Based on this, in addition to the $7 billion directly provided by the World Bank, Ethiopia will receive $8.5 billion in the next three years. One billion dollar direct grant, 500 million dollars to extend the debt payment, $320 million by International Investment Cooperation (IFC), $1.15 billion multilateral investment, $6 billion in the next three years for budget subsidies, $2.1 billion by international financial cooperation are part of this World Bank package. Ethiopia will get a total of $16.6 billion in the next three years.
On Sunday, the Ethiopian Prime Minister Abiy Ahmed shared details of macro economic reforms the country wants to introduce. On Tuesday, Ethiopian birr lost 30% of its value after the Ethiopian government liberalized the foreign Exchange Market as part of macro economic reforms.
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