Landmark financing: World Bank approves $1.5 billion for Ethiopia

The World Bank's board has granted approval for $1.5 billion in financing for Ethiopia's budget support, marking the first time the lender has offered this type of lending to the country.

This decision comes as Ethiopia strives to advance its long-standing debt restructuring.

The second most populous country in Africa received a $3.4 billion program from the International Monetary Fund on Monday, following the decision to float its birr currency by the central bank, allowing for progress in its debt restructuring.

Ethiopia will receive a $1 billion grant and a $500 million low interest credit line from the World Bank, in what is the first direct budgetary support facility provided to the country by the global lender.

Financial support was contingent on the government implementing important economic reforms, which included liberalizing the foreign currency market.

Ethiopian officials report that the funding is included in a $10.7 billion financial package provided by the IMF, World Bank, and other lenders.