Parliament has ratified two loan agreements worth a combined 124.6 million euros with the governments of Italy and France, approving both proclamations unanimously during its second emergency session of the fifth parliamentary term. The larger agreement secures a 70 million euro loan from Italy to provide direct budget support for the government’s economic reform agenda. The concessional financing carries a 30-year repayment period, including a 16-year grace period, with no interest or service charges. Aligned with the World Bank’s third Ethiopia Development Policy Operation, it is expected to support reforms across multiple sectors while sustaining economic growth. Lawmakers also approved a 54.6 million euro loan agreement with France to finance the modernisation of Ethiopia’s infrastructure, digital systems, regulatory functions and property management through technology-driven solutions. The loan will be repaid over 25 years, including a 10-year grace period, at an annual interest rate of 0.347pc. The financing will also support the modernisation and digitalisation of Ethiopian Electric Power’s systems, including upgrades to transmission management and operational control.

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