Council of Ministers Approves Over 1.1 Billion USD Loan

Addis Ababa June 30/2021 (ENA) The Council of Ministers has referred over 1.1 billion USD loan agreements and draft bills that enable the country to ratify the African Road Safety Charter and the United Nations Road Traffic Convention to the House of People's Representatives.

The Council of Minister has approved today four loan agreements concluded with the International Development Association (IDA).

According to a press release of the Council, the first 500-million-USD loan agreement would improve access to electricity for the community and to increase  supply of electricity to the rural community at household level, community institutions and enterprises, it was learned.

The other 250-million-USD loan agreement will be used to improve the provision of basic services and strengthen accountability, provide access to basic services such as health, education, agriculture, water and rural roads at woreda level, and strengthen the decentralized service delivery system in the country.

The third 180-million-USDloan agreement to be implemented through the Development Bank of Ethiopia would finance small and medium enterprises, the press release stated. 

The fourth 200-million-USD loan agreement will be used to modernize the exchange of information technology that transforms the economy and the entire system of government from traditional to digital.  

The total one billion and 130 million USD loan agreement is interest free with 0.75 percent service charge and 6-year grace period to be repaid in 38 years, it was learned.  

The Council unanimously approved the draft proclamations and referred them to the House of People's Representatives, confirming that they are in line with the country's credit policy and  no associated pressures.

Next, the Council discussed the draft proclamations that enable the country to ratify African Road Safety Charter and the United Nations Road Traffic Convention. 

It is believed that the ratification of these two international agreements will facilitate the country's relations with neighboring countries in terms of road transport, coordination of national, local and regional road safety programs and formulate comprehensive road safety policies at national level. 

After extensive deliberations, the Council has unanimously approved the resolution and referred them to the House of People's Representatives.