Ethiopia fails to pay creditors

ESAT News 

A 1.8 billion dollars is due this year to creditors but an empty coffer is worrying authorities in Addis Ababa who took 40 billion dollars in loans from various creditors.

According to ESAT sources, it would be impossible to pay the amount due this year when the the country was able to generate only 2.9 billion dollars in export trade this year.

Revenue from export trade fell short of its goal with only 2.9 billion dollars of the targeted 4.75 billion dollars earned this year.

Of the total 40 billion in loans, the federal government owes 30 billion while 10 billion of the loan was taken on behalf of the Ethiopian Airlines, Ethiopian Telecom, Roads Authority, Ethiopian Electric and the Ethiopian Railway. All but the Ethiopian Airlines and Ethiopian Telecom have failed to pay back their debt. Let alone paying their debt, according to the sources, the institutions are hardly able to pay salaries to their employees.

The sources said the regime has now resorted to buy petroleum on credit from Sudan. As a kickback to Sudan, the agreement stipulates for Ethiopia to agree to import through the port of Sudan and also for Ethiopia to transfer the administration of disputed lands on border areas to the Sudan for ten years, as recently reported by ESAT.

Sources also disclosed that the National Bank and the Ministry of Finance and Economic Development, the two institution that encouraged and played a key role in taking the loans, are now at war with each other, one blaming the other for the failure to pay back the loans.

While the country is underwater financially, members of the oligarchy, who are overlooking mega projects, were still benefiting and pocketing money meant to pay for projects. Two names mentioned by ESAT sources are Arkebe Oqubay, who is in charge of building industrial parks and Sufian Ahmed, the minister of finance.