Addis Ababa, May 13, 2025 (FMC) – The House of People’s Representatives (HoPR) of the Federal Democratic Republic of Ethiopia, during its 29th regular session held today, ratified four key international agreement proclamations that had been forwarded to the parliament by the Council of Ministers on May 1, 2025, for further deliberation and final ratification.
The session began with a motion presented by Ms. Mesete Haile, Assistant Government Whip Minister for Finance, requesting that the four proclamations be moved directly to a second reading for discussion and approval. The motion was supported by the House, and the proclamations were then ratified after thorough deliberations.
The first ratified bill is Proclamation No. 1377/2017, a concessional loan of €11.5 million signed between the Government of Ethiopia and the Government of Italy. The loan, repayable over 30 years with a 16-year grace period, will support Ethiopia’s Budget Support Program, focusing on environmental development and the promotion of a green economy.
The second proclamation ratified by the House is Proclamation No. 1378/2017, a $50 million loan agreement with the International Development Association (IDA), equivalent to 38.1 million Special Drawing Rights (SDRs). This financing will support the implementation of the Education Sector Transformation Program, which aims to enhance learning and teaching quality across the country. The loan carries a 0.75% service charge and is repayable over 38 years, including a 6-year grace period. Both the Italian and IDA loans are interest-free and aligned with Ethiopia’s debt management policy.
The parliament also ratified Proclamation No. 1379/2017, concerning Ethiopia’s accession to the African Finance Corporation (AFC), a pan-African multilateral development finance institution. By joining the AFC, Ethiopia expects to gain access to significant financial and technical resources to support infrastructure development, natural resource management, industrial growth, and poverty reduction. This proclamation was passed with three votes in favor and three abstentions.
The fourth ratified proclamation pertains to Proclamation No. 1380/2017, which concerns the air transport agreement signed between the Government of Ethiopia and the Government of Austria. The agreement aims to strengthen bilateral relations, create new market opportunities for Ethiopian Airlines, and promote trade, tourism, and foreign direct investment.
Members of the House raised several questions regarding the loan agreements, and Mr. Eyob Tekalign, State Minister of Finance, provided detailed responses and explanations during the session.
All four proclamations were ratified following extensive parliamentary deliberation, underscoring Ethiopia’s ongoing commitment to sustainable development, regional cooperation, and global economic integration.