Ethiopia's parliament has approved a half a billion dollars loan agreement and a draft proclamation.
The agreement is between Ethiopia and the International Development Association (IDA), a member of the World Bank Group. IDA yesterday approved a 1.5 billion dollars financing deal with Ethiopia, including a one billion dollar grant.
"500 million dollars of the financial assistance has been provided as a loan," said Tesfaye Beljige (PhD), a government whip at the parliament.
The loan will have an interest rate of 0.5 percent per annum, to be repaid over 38 years plus a six-year grace period.
The deal was approved by a majority vote, with one vote against and one abstention.
The World Bank's 1.5 billion dollars financing comes on top of a $16 billion pledge for the next three years, adding to a 3.4 billion dollars loan to the country following the floating of its currency.