WB to support Ethiopia with budget grants, concessional credits

Addis Ababa, April 15, 2023 (FBC) – FDRE”s Minister of Finance, Ahmed Shide, met with World Bank Group’s President David Malpass on the margins of the World Bank and IMF Spring Meetings in Washington D.C

According to the World Bank (WB), during the meeting the two sides discussed the progress achieved by Ethiopian authorities in the implementation of the November 2022 peace agreement.

President Malpass encouraged further steps toward durable peace and prosperity for all Ethiopians.

They spoke extensively about the challenging global outlook for developing countries and Ethiopia’s urgent need to restore macroeconomic stability.

President Malpass emphasized the benefits of rapid and decisive policy reforms amid the challenging context of drought, internal conflicts, debt distress, and compounding structural challenges.

He urged the government to remove macroeconomic distortions which will help slow inflation and unlock investment.

He also stressed the importance of moving away from a state-driven economic model, and to enhance the business enabling environment, allow for more competition in the financial sector, and facilitate private-sector led growth.

Noting slow progress in the implementation of the G20 Common Framework, President Malpass urged a rapid agreement of official bilateral and private sector creditors on a debt treatment for Ethiopia.

President Malpass emphasized the World Bank Group’s strong support to Ethiopia, including budget support in the form of grants and highly concessional credits as the Government implements a robust reform program to restore macroeconomic stability and poverty reduction.