Council of Ministers approves $1.5 Billion financial agreement with IDA

Addis Ababa, July 31, 2024 (FBC) – In its 38th regular session today, the Council of Ministers approved a proclamation regarding the financial assistance agreement with the International Development Association (IDA).

The agreement, valued at $1.5 billion, encompasses $1 billion in grants and $500 million in loans. This financial support is intended to assist the Ethiopian government in implementing reforms aimed at stabilizing the macroeconomy, with a particular focus on job creation, inflation regulation, addressing foreign exchange shortages, and facilitating structural adjustments. Additionally, some of the funds will be allocated to directly support the federal budget for the 2024/2025 fiscal year.

Given that the loan is interest-free, features a six-year grace period, and has a repayment timeline of 38 years, the Council of Ministers endorsed the financial agreement and forwarded it to the House of Peoples’ Representatives for final approval.