Ethiopian PM admits country needs to tackle debt issue

[Che -Guevara]

Ethiopian Prime Minister Abiy Ahmed has said foreign debt is becoming a burden to his country.

"We have reached a point where debt servicing has become very hard for the national economy," Ahmed said in an annual performance report presentation to parliament on Monday less than 70 days after he assumed office in April.

According to the prime minister, the country has taken $1.3 billion in loans during the first six months of the budget year (since July 8, 2017), which rose the country's total debt to $24.7 billion.

He said a little more than 57 percent of the loan was used by the government while public companies consumed the rest.

“During the first six months of the budget year, import-export showed a 0.02 percent increase but the trade balance widened [to the disadvantage of Ethiopia] by 2.2 percent,” he said.

“We have been taking loans and now that is getting too much,” he said.

[Che -Guevara]

So, this is the country that supposedly want to invest Somali ports.

[Holac]

China said it will not give any more credit handouts to Ethipia, probably because Abiy doesn't impress the Chinese. Without China's help, Ethiopia will fall apart economically. The boom of yesterday is gone. The West will not give a penny to Ethiopia other than place the country under the noose of IMF as usual.

It is not looking good!

[galbeedi]

I have to take my hat of to Abiy Ahmed. He ihas been office in less than hundred days, yet his reforms on economy, foregny policy and military is felt throughout Ethiopia and the region.

he said most of the loans were consumed by piublic companies. Now , that is what real change means rather than rearrange the titanic deck.

[Old_Observer]

12 hours ago, Holac said:

China said it will not give any more credit handouts to Ethipia, probably because Abiy doesn't impress the Chinese. Without China's help, Ethiopia will fall apart economically. The boom of yesterday is gone. The West will not give a penny to Ethiopia other than place the country under the noose of IMF as usual.

It is not looking good!

Its all mixed bag for now. There is too many political issues, but its the economy that will push things to clear up fast.

You cannot feed lectures to people for long. The Economy is not showing few things that are hidden:

There is few industries that are not working. Since Ethiopia is not an industrial country the effects so far is not big.

25 billion is not big even for Ethiopia. What makes it big is the industry that was planned to service it is not working.

GERD could have brought 2 billion a year and was planned to start 700MW this year. Not happening. No body mentions it. Egyptians all of a sudden not writing single word about it. I think is delayed if not canned.

For kililka this happened at wrong time. Roads, dams were moving fast now is slowing, because the federal government has put on hold all programs, especially anything that needed imported parts.

 

[Old_Observer]

11 hours ago, galbeedi said:

I have to take my hat of to Abiy Ahmed. He ihas been office in less than hundred days, yet his reforms on economy, foregny policy and military is felt throughout Ethiopia and the region.

he said most of the loans were consumed by piublic companies. Now , that is what real change means rather than rearrange the titanic deck.

There is no clear direction so far. Things have not taken shape. Everybody wanting Tigray dead body is one thing, but what do I get out of it is the most important. The cloud of doubt on the PM has not gone yet.

Don't count out China and Turkey yet. UAE has deep pockets, but cannot plug big hole in Ethiopia. Don't count out Ghelleh too. He does not want to stick his naek while people are drunk with facebook, but he still has the key to so many critical things.

Keep your hat, so the wind does not blow it. You will have enough time t tip it or lift it. Things can go in different directions.