World Bank to Resume Development Assistance to Ethiopia

World Bank to Resume Development Assistance to Ethiopia

 

Panafrican News Agency, September 13, 2000

 

ADDIS ABABA, Ethiopia

 

The World Bank has given an assurance to resume financial assistance to Ethiopia, suspended more than two years ago during

the country's border conflict with Eritrea, the state-owned Ethiopian Herald reported Wednesday.

 

The assurance was given by World Bank President James Wolfeson Tuesday in Washington during talks with Ethiopian Prime

Minister Meles Zenawi, it said.

 

This followed the 18 June OAU-brokered agreement on the cessation of hostilities signed by both countries.

 

Wolfeson was quoted as having said that the bank had "designed a strategy for Ethiopia that would facilitate the country's development assistance."

 

He also assured Meles that short and long-term assistance to the country would be released in consultation with the International Monetary Fund.

 

The Herald said Meles had told Wolfeson that his country needed the bank's suspended financial assistance to kick-start the troubled economy.

 

It is also to support the country's short and long- term developments programmes, and address budget deficit and long-term

infrastructural development.

 

The border conflict with Eritrea is said to have cost Ethiopia more than one billion US dollars worth of development projects, which were frozen/suspended by Western donors and financial institutions.

 

Among projects worst hit are those on food security, education, and road construction.