Ethiopia Receives $2.5 Billion from IMF and World Bank

Mamo Mehretu, the governor of the National Bank of Ethiopia (NBE), recently announced that the bank has received $2.5 billion from the International Monetary Fund (IMF) and the World Bank. This money will help improve Ethiopia’s financial situation and support important economic changes.

At the start of this week, the International Monetary Fund (IMF) approved a significant loan of $3.4 billion to assist Ethiopia in its economic reform efforts. This four-year loan program, valued at SDR 2.556 billion (approximately 850% of Ethiopia’s quota), aims to provide immediate financial support and long-term stability for the country’s economy.

Moreover, the World Bank has announced significant financial support for the ongoing economic reform efforts of Ethiopia, totaling $15.5 billion over the next three years. This includes providing $7 billion in direct support and an additional $8.5 billion in the next three years.

Furthermore, IMF and World Bank both are backing the economic reforms in Ethiopia.

Governor Mehretu also talked about worries regarding how the recent currency changes might affect prices for consumers. He pointed out that only 18% of imported goods are bought with foreign currency, while most come into the country through informal or parallel markets. To prevent price increases, he assured everyone that the central bank will take legal action against anyone involved in illegal activities or trying to manipulate the market.

In addition to legal actions, Governor Mehretu announced that the bank will put strict financial rules in place to stop illegal activities in the financial sector. He expressed confidence that the NBE is well-prepared with the right technology to handle these issues.

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