If lengthy negotiations with the World Bank and the International Monetary Fund (IMF) are successful, Ethiopia would get $10.5 billion in support over the next few years, Prime Minister Abiy Ahmed announced on Friday.
The most populous nation in East Africa had severe inflation and ongoing shortages of foreign currency in December, making it the third country on the continent to experience a debt default in as many years.
If lengthy negotiations with the World Bank and the International Monetary Fund are successful, Ethiopia will get $10.5 billion in support over the next few years, Prime Minister Abiy Ahmed announced on Friday.
The most populous nation in East Africa had severe inflation and ongoing shortages of foreign currency in December, making it the third country on the continent to experience a debt default in as many years.
“We have been having a wide range of talks, negotiations and discussions with the IMF and World Bank. Because we were a bit tough with them and they were also tough with us, the (talks) took five years,” Abiy told lawmakers.
“Now with the support of some friendly countries, it seems like many of our ideas have been accepted. If this succeeds and we can agree on the reforms, Ethiopia will get $10.5 billion in the coming years,” he said.
Without going into further detail, Abiy continued, “There were some reforms the government was unwilling to undertake right away.”
“There are some areas we think should be reformed now, and there are things we think should stay as it is. If all these suggestions get accepted and we agree, there is an opportunity ahead of us. This reform agenda will play a huge impact in alleviating the debt burden,” the prime minister said.
