Preview

Prime minister: Ethiopia hoping for $10.5 billion financial aid in coming years

Please log in to download this media. Not registered? Register now!
Metadata
  • Prime minister: Ethiopia hoping for $10.5 billion financial aid in coming years
  • July 4, 2024
  • Article Body Text Addis Ababa — <p>Ethiopian Prime Minister Abiy Ahmed said on Thursday he was expecting about $10.5 billion in financial aid in the coming years once the country wraps up negotiations with international lending institutions.  </p> <p>Africa's second most populous nation, battered in recent years by several armed conflicts, the COVID pandemic, and climate shocks, has been engaged in drawn-out talks seeking to secure a support program from the International Monetary Fund (IMF).  </p> <p>There has been speculation that Ethiopia may have to devalue its currency, the birr, as a condition of IMF aid.  </p> <p>&quot;We have been negotiating with the IMF and World Bank on a wide range of issues,&quot; Abiy said in an address to parliament, adding that both Ethiopia and the IMF &quot;are stubborn.&quot;   </p> <p>&quot;Several of our proposals were finally accepted,&quot; he said.   </p> <p>&quot;When this process comes to a successful conclusion, and the reform is approved, we will receive $10.5 billion in the coming years.&quot;  </p> <p>The IMF had no immediate response to AFP's request for comment on Abiy's remarks.  </p> <p>According to a source close to the matter, the program currently being negotiated with the IMF concerns around $3.5 billion in financial assistance, and any agreement could result in the release of an equivalent amount from the World Bank.   </p> <p>Ethiopia has about $28 billion of external debt and is also grappling with sky-high inflation and a shortage of foreign currency reserves.  </p> <p>The landlocked country's credit rating was downgraded to a partial default in December by international agency Fitch after it missed a $33 million coupon payment on a Eurobond.   </p> <p>The two-year conflict in the northern Tigray region which ended in November 2022 led to the suspension of numerous development aid programs and budget assistance.  </p> <p>When he took office in 2018, Abiy pledged to embark on reforms of Ethiopia's closed and state-dominated economy, but little has changed since then.</p>
  • Content Type Text
  • Language English
  • NewsML Media Topics Arts, Culture, Entertainment and Media
  • Subtitles / Dubbing Available No
  • Network VOA
  • Embargo Date July 4, 2024 12:22 EDT
  • Byline Agence France-Presse
  • Brand / Language Service Voice of America - English
Related records