The Ethiopian Council of Ministers convened its 48th regular meeting today, making significant decisions on vital national matters, including the approval of major financial agreements and legislative amendments.
A primary focus of the meeting was the unanimous approval of two crucial financial assistance and loan agreements with the International Development Association (IDA). These agreements allocate 258.1 million Special Drawing Rights (SDR) for the second phase of Ethiopia's sustainable and inclusive growth development policy and an additional 27.3 million SDR to support the express road development project.
Both loans are noteworthy for being interest-free, carrying only a 0.75% service charge, and structured for long-term repayment, including a generous six-year grace period. The Council confirmed that these agreements align seamlessly with Ethiopia's national debt management strategy and has forwarded them to the House of People's Representatives for final ratification.
In a move aimed at modernizing the nation's fiscal framework, the Council also unanimously approved a draft proclamation to amend the Federal Income Tax Proclamation. This amendment addresses existing gaps in the previous tax law, which were identified in light of current national and global economic conditions. The revised legislation is designed to align Ethiopia's tax system more closely with fundamental tax principles, fostering a more efficient and equitable economic environment. This draft proclamation will now proceed to the House of People's Representatives for further deliberation and approval.
Finally, the Council ratified a bilateral agreement with the Federal Republic of Nigeria, establishing a visa waiver program for holders of diplomatic and service passports. This agreement is poised to significantly streamline official travel between the two nations, eliminating the need for visas for high-ranking government officials, diplomats, and citizens on official business. The Council recognized the agreement's importance in strengthening bilateral relations and has subsequently forwarded it to the House of People's Representatives for endorsement.
These decisions underscore the Ethiopian government's ongoing efforts to enhance economic development, improve infrastructure, reform key legislation, and strengthen international diplomatic ties.