The World Bank approved a $1.5 billion financial package for Ethiopias economic reform programme after officials relaxed restrictions on the local currency, the Birr.
Ethiopias departure from its long-standing management of the birr triggered the release of previously negotiated funds from international financial institutions, including the International Monetary Fund (IMF).
The initial financing from the World Bank comprises a $1 billion grant and a $500 million concessional loan, as announced by the Bank on Tuesday.
This operation supports the government of Ethiopia at a critical time in its efforts to accelerate poverty reduction and shift to more inclusive, sustainable, and private sector-led growth, World Bank Ethiopia Director Maryam Salim said.
Importantly, there is a strong emphasis on protecting poor and vulnerable people from the cost of economic adjustment.
