House Approves over 340 Mln SDR Loan Agreement with IDA

Addis Ababa December 04/2018 The House of People’s Representatives (HPR) has approved today over 340 million SDR loan agreement signed between the Government of Ethiopia and International Development Association (IDA). The SDR currency value is calculated by the creator IMF and is determined by summing the value in U.S dollars, based on market exchange rates, of a basket of major currencies. The 340,100,000-SDR loan agreement is reportedly interest free and payable in 38 years, with 6 years grace period. The loan will be utilized as budgetary support targeted to encourage the policy measures being taken by the government. It will also be used to boost the competitiveness of the country by creating conducive environment for the participation of the private sector, Revenues, according to Budget and Financial Affairs Standing Committee Chairperson Lemlem Hadgu. Besides, the loan will help productivity, efficiency and competitiveness of the country as well as solve good governance problems, transparency and accountability.