WASHINGTON, US
The World Bank's board has granted approval for $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.
This decision comes as Ethiopia strives
to advance its long-standing debt restructuring.
The second most populous
country in Africa received a $3.4 billion program from the International
Monetary Fund on Monday, following the decision to float its birr
currency by the central bank, allowing for progress in its debt restructuring.
Ethiopia will receive a $1
billion grant and a $500 million low interest credit line from the World Bank,
in what is the first direct budgetary support facility provided to the country
by the global lender.
Financial support was
contingent on the government implementing important economic reforms, which
included liberalizing the foreign currency market.
Ethiopian officials report
that the funding is included in a $10.7 billion financial package provided by
the IMF, World
Bank, and other lenders.
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