Ethiopia eyes $700m World Bank loan in a financial sector reform plan
Addis Ababa, Ethiopia. Ethiopia is fighting to pull out from macroeconomic headwinds associated with severe inflation, mounting debt and foreign currency shortage, which is impacting foreign investments.
Ethiopian government is eyeing $700 million in a concessional loan from the World Bank to finance the financial sector reforms, including the recapitalisation of the state-owned Commercial Bank of Ethiopia, which is facing financial distress due to increased bad loans.
The National Bank of Ethiopia (NBE) disclosed in its latest financial stability report dated November 2024 that the World Bank-backed Financial Sector Strengthening Project (FSSP), which it is spearheading together with the Ministry of Finance, is designed to ensure the successful restructuring, recapitalisation and reform of the bank.
