Nation’s Debt Burden Declines from High Risk to Moderate in Half FY

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ENA,February 19/2020 The debt burden of Ethiopia has fallen from high risk to moderate over the past six months of this Ethiopian budget year, Ministry of Finance disclosed. 

Briefing journalists today, Ministry Public Relations Information Director Haji Ibsa said decline in the debt burden risk was due to change of the extension of debt payment of commercial loan by the Government of China to concessional loan.

The new loan directive of Ethiopia and credit worthiness have also contributed to the fall of the debt burden, he added.

Meanwhile, the country has secured a total of 54.5 billion birr from bilateral and multilateral donors for implementation of projects and programs, of which about 25.76 billion Birr is in aid and over 28.7 billion Birr in loan, the director revealed..

Haji further stated that multilateral and bilateral donors have pledged a total of 39.258 billion Birr.  

Apart from collecting taxes and non-taxes revenues, the country is expected to meet the budget deficit with foreign and domestic loans, he noted.

The nation has a budget deficit of about 97 billion Birr this Ethiopian budget year, of which 40 billion Birr is expected from abroad and 57 billion Birr from internal loan.

On other hand, the country owes about 12.3 billion USD internal loan and 16.75 billion USD  external loan, respectively.

The director also pointed out that the country has plans to pay 25 billion birr debt this Ethiopian budget year, of which half is paid in the past six months.