Addis Ababa — The House of People's Representatives (HPR), in its second extraordinary session held today, unanimously approved two concessional loan agreements worth a combined 124.6 million euros with the governments of Italy and France.

The agreements are anticipated to support Ethiopia's homegrown economic reform agenda and accelerate the East Africa nation's digital transformation.

The first agreement ratified by the House is a 70-million-euro concessional loan between the Government of Ethiopia and the Government of Italy.

The financing will serve as budget support under the World Bank's Third Ethiopia Sustainable Growth and Development Policy Operation (DPO III), providing direct support to the federal government's budget to advance ongoing macroeconomic reforms and foster sustainable economic growth.

Keep up with the latest headlines on WhatsApp | LinkedIn

The Italian loan carries highly favorable terms, with no service charge, a 16-year grace period, and a 30-year repayment schedule.

This agreement is considered as a long-term concessional financing package aimed at supporting Ethiopia's reform priorities.

Lawmakers also unanimously endorsed a 54.6-million-euro concessional loan agreement between the Government of Ethiopia and the Government of France to finance the modernization and digitalization of Ethiopia's command-and-control and asset management systems.

The French loan features a 10-year grace period, a 25-year repayment term, and a concessional interest rate of just 0.347 percent.

The project is expected to strengthen government institutions by modernizing key public administration systems, improving operational efficiency, and expanding digital public service delivery.