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The World Bank’s board has approved USD 1.5 billion in financing for Ethiopia’s budget support, marking the first time the lender has offered this type of lending to the country as Ethiopia strives to advance its long-standing debt restructuring
The World Bank’s board has approved USD 1.5 billion in financing for Ethiopia’s budget support, marking the first time the lender has offered this type of lending to the country as Ethiopia strives to advance its long-standing debt restructuring.
The second most populous country in Africa received a USD 3.4 billion program from the IMF, following the decision to float its birr currency by the central bank, allowing for progress in its debt restructuring. Ethiopia will receive a USD 1 billion grant and a USD 500 million low-interest credit line from the World Bank. This is the first direct budgetary support facility provided to the country by the global lender.
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Financial support was contingent on the government implementing important economic reforms, which included liberalizing the foreign currency market. The funding is included in a US$10.7 billion financial package provided by the IMF, World Bank, and other lenders.
