Ethiopia secures a seven billion Birr loan and grant

By Tesfa-alem Tekle

February 11, 2008 (ADDIS ABABA) — Ethiopia has secured a seven billion Birr loan and grant over the last six months, Finance and Economic Development Ministry said. It also said the country has enjoyed debt cancellation amounting to 869.4 million Birr during the reported period.

Public Relations and Information Department Head with the Ministry Getachew Admasu told the official ENA over the weekend that Ethiopia has signed various bilateral and multilateral agreements providing for obtaining the stated amount of loan and grant with development partners and multi-lateral organizations.

He said 3.84 billion Birr was secured in the form of loan and the balance in grant.
Getachew said the amount of loan and aid obtained from multilateral institutions and the balance from development partners.

Sweden, Ireland, South Korea, Japan, China, India and the Netherlands, International Development Association (IDA), the European Union and UNDP, UNFPA, UNICEF, FAO, Global, African Development Fund , are some of the sources of the loan and aid, he said.

Agricultural Development Fund, OPEC Fund For International Development, Arab Bank for African Development and Nordic Development Fund, Norway, the US, Italy, Germany, Canada, Kuwait are also the supplier of the loan and grant, according to Getachew.

Most of the fund would be spent on agricultural and rural development, hydroelectric power, health, education and water development activities, among others.

Getachew said various creditors have also cancelled loans amounting to 869.4 million Birr in which Ethiopia owes to them during the reported period.

He further said IMF, the African Development Bank, European Investment Bank , International Agricultural Development Fund, Oilf Exporting Countries and Nordic Development Fund that cancelled Ethiopia’s debt.

(ST)