Council of Ministers Passes Crucial Decisions on Loans, Taxes, and Banking Reforms

In its 35th regular meeting today, Ethiopia’s Council of Ministers discussed and approved several important bills and reform plans.

Firstly, the Council approved a loan agreement with the International Development Association to obtain USD 207.2 million in interest-free funding for the second phase of the country’s urban drinking water and sanitation projects. This loan will be repaid over 38 years with a 6-year grace period.

The Council also unanimously decided to forward a property tax bill to the House of Representatives. This bill aims to ensure more equitable wealth distribution in urban areas by allowing state governments to implement their own property tax laws.

Reforms to strengthen the Commercial Bank of Ethiopia were also approved, including enhancing administrative efficiency and improving financial reporting to help increase the bank’s capital.

Additionally, the Council agreed to revise the National Bank of Ethiopia’s founding legislation to better align with international best practices and address evolving economic, financial, and geopolitical changes.

Last but not least, the Council discussed and approved a new banking sector bill to establish a legal and regulatory framework for licensing and managing the entry of foreign banks into the Ethiopian market.

An environmental and social impact assessment bill was also advanced to the House of Representatives to guide mitigation of negative effects from development projects.