ADDIS ABABA – Minister of Finance announced that the country has obtained over 39 billion Birr in the form of loans and grants from multilateral and bilateral sources in the first half of this budget year.
Haji Ibsa, Public Relations Director at the Ministry told the media yesterday that multilateral sources have provided Ethiopia with 2.6 billion and 13.3 billion Birr loans and grants respectively, which stand at some 16 billion Birr in total.
On the other hand, the country has obtained 9.3 and 13.8 billion Birr in the form of loans and grants respectively from bilateral sources. In sum, the bilateral sources have provided Ethiopia with 23.2 billion Birr in the form of grants and loans.
All in all, the country has accessed a loan of 12 billion Birr and a grant of 27.25 billion Birr in the first six months of the budget year.
Ethiopia has also obtained 29.26 billion and 25.2 billion birr loans and grants from multilateral and bilateral sources respectively for the execution of programs and projects.
In the last six months, the central government has borrowed some 12 million and 16.7 million USD from internal and external sources.
A study by the World Bank and IMF also revealed that the debt distress is easing and the country was reduced from ‘high risk’ to that of ‘moderate risk,’ mainly because of the rescheduling of the grace and repayment periods of loans from China.
Particularly, an agreement has been reached with China to reschedule the grace and repayment periods for the loan accessed to construct railways in Ethiopia from 5 to 10 years and 10 to 20 years respectively.
The Ethiopian Herald February 20/2020
BY MULATU BELACHEW
