The Ethiopian Council of Ministers today approved draft proclamations for two key financial support agreements totaling over €11.5 million and SDR 38.1 million during its 44th regular meeting.
The first agreement, signed with the Government of the Republic of Italy, provides €11,500,000 as budget support for the Local and Green Economy Development Program. This loan is repayable over 30 years, including a 16-year grace period.
The second agreement, with the International Development Association (IDA), provides 38,100,000 Special Drawing Rights (SDR) for the implementation of the Education Sector Transformation Program, aimed at enhancing teaching and learning. This funding comes with a 0.75% service charge and is repayable over 38 years, including a 6-year grace period.
The Council confirmed that both loans are interest-free and align with the country's debt management policy. Following discussion, the Council unanimously decided to forward the draft proclamations for both agreements to the House of Peoples' Representatives for ratification.