ADDIS ABABA, Ethiopia 

A new $250 million financing agreement was signed Thursday between the World Bank and the Ethiopian government.

The bank’s head for Ethiopia Carolyn Turk and Ethiopian Finance Minister Ahmed Shide signed the deal that will be utilized in Ethiopia’s Growth and Competitiveness Programmatic Development Policy.

Half of the funds will be provided in the form of credit, while the rest is a grant, the finance ministry said in a statement, according to local broadcaster FANA.

“This operation that is provided in the form of budget support aims at boosting economic transformation by increasing private sector participation and promoting good governance practices,” the statement said.

“Overall, it targets to assist the on-going reform and transformation efforts in Ethiopia as well as the implementation of the recently approved Home-grown Economic Reform Agenda,” it added.

The supplemental budget support would help Ethiopia to quickly close its current financing gap due to the COVID-19 pandemic and minimize the effect of the crisis on the continued implementation of a reform agenda.

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