ADDIS ABABA – The Ethiopian Council of Ministers has approved a substantial $1.5 billion financial package from the International Development Association (IDA) during its 38th regular session. This package includes a $1 billion grant and a $500 million loan aimed at bolstering the government’s macroeconomic policies.

According to Ethiopian News Agency, this financial support is designated for implementing various government policy reforms. These reforms target critical areas such as job creation, inflation control, forex shortage resolution, and structural adjustments. It also provides direct support to the 2017 budget of the Ethiopian fiscal year.

The Council’s decision was unanimous, emphasizing that the financial agreement aligns with the country’s loan administration strategy. The terms of the agreement are notably favorable, featuring an interest-free status, a six-year grace period, and a 38-year repayment duration. The package now moves to the House of Peoples Representatives for further approval.