The World Bank’s board has approved a landmark $1.5 billion financing package for Ethiopia’s budget support, marking the first instance of such direct lending to the country by the institution. This decision supports Ethiopia’s ongoing efforts in debt restructuring.
To support Ethiopia’s Homegrown Economic Reform Agenda that aims to stimulate private investment and jobs, our Board approved a 4-year $3.4bn ECF to help Ethiopia address economic challenges, strengthen growth, and resume rising living standards.https://t.co/Nq0W2IpwY1 pic.twitter.com/YduC54tHkf
— IMF Africa (@IMFAfrica) July 29, 2024
This announcement follows Ethiopia’s recent receipt of a $3.4 billion program from the International Monetary Fund (IMF) earlier this week. The program was bolstered by the Central Bank of Ethiopia’s decision to float its birr currency, facilitating progress in the nation’s debt restructuring.
The World Bank’s package includes a $1 billion grant and a $500 million low-interest credit line. This represents the inaugural direct budgetary support facility extended to Ethiopia by the global lender. The provision of this financial support is contingent upon the Ethiopian government implementing significant economic reforms, including the liberalization of the foreign currency market.
According to Ethiopian officials, this financing is part of a broader $10.7 billion financial package coordinated by the IMF, World Bank, and other international lenders.
