Ethiopia-Economy

Ethiopian debt tops $54.7bn

APA-Addis Ababa (Ethiopia)

Ethiopian government total debt from foreign and local lenders surpasses $54.7 billion, the Ministry of Finance of Ethiopia has said.

The total external and domestic debt of the country has reached $28.99 billion and $25.71 respectively. The Ministry has made the announcement on Wednesday in its 6th months report for the Ethiopian fiscal year started July 8, 2020.

The ministry in a statement said state run public enterprises are highly indebted and are not in a position to repay the over $23 billion they borrowed from external and internal sources;.

The government of Ethiopia has introduced a new strategy to rescue highly indebted public enterprises, which borrowed a total of more than $23 billion birr from local and foreign lenders.

Ahmed Shidie, Minister of Finance  said the government’s new strategy aims at rescuing both the borrower and the bank from insolvency and seeks to ease the government’s total debt burden amounting to $54.7 billion from local and foreign sources.

The council of Ministers on Tuesday approved a new strategy to be implemented by what is called Public Enterprises Liability and Asset Management Company.

The company will be bestowed with a responsibility to encourage the public enterprises to restructure their debt and re-emerge from bankruptcy in better shape than before they went bust.

Ethiopian Electric Power, Ethiopian Railway Corporation, Ethiopian Sugar Corporation, Metals and Engineering Corporation, Ethiopian Chemical Corporation and the Ethiopian Electric Utility are some of the highly indebted public enterprises in Ethiopia.


MG/abj/APA

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