The Ministry of Finance and the World Bank have inked a USD 700 million loan agreement aiming to enhance the stability and sustainability of Ethiopia’s financial circle.
The deal is strategically designed to support critical financial sector reforms and recapitalization efforts of the Commercial Bank of Ethiopia and the Development Bank of Ethiopia,according to the ministry of Finance.
The move would support the government's recent bold reform to modernize and liberalize banking in the country.
A substantial portion of the funding will be allocated to recapitalizing CBE and DBE, addressing debt legacy issues, improving asset quality, and ensuring compliance with capital adequacy requirements.
The agreement was signed by Ahmed Shide, Minister of Finance, representing the Government of Ethiopia, and Maryam Salim, Country Director for Ethiopia, Eritrea, Sudan, and South Sudan at the World Bank.