Ethiopia announced on Friday that it has signed a $1 billion financing deal with the World Bank aimed at supporting its economic reform agenda and spurring growth, according to Reuters.
The country’s finance ministry shared in a Facebook post that the funding will help the government strengthen financial sector stability, improve trade competitiveness, and increase domestic resource mobilization.
In its statement, the World Bank explained that the package consists of a $650 million grant and a $350 million concessional loan.
The Bank also noted that, depending on board approval and available resources, its International Development Association plans to provide Ethiopia with around $5 billion in new financing over the next three fiscal years.
This commitment from the World Bank comes shortly after the International Monetary Fund approved the latest review of Ethiopia’s $3.4 billion loan programme earlier this week, which will allow the country to access an additional $262.3 million.
The reforms backed by the IMF include the floating of the birr currency last year and measures to open the once-closed economy to private sector participation.
The IMF has emphasized the importance of improving the functioning of the foreign exchange market, increasing domestic revenues, restoring external debt sustainability, and promoting greater fiscal transparency.
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