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Ethiopia is among the countries that cannot pay their debts

Ethiopia has been classified as one of the default countries because it failed to pay the interest on the one billion dollar bond that it sold in the world market.

Reuters news agency Ethiopia yesterday, Monday, December 25/2023. It was read that it is the third African country that could not pay its debt due to the fact that it did not pay the 33 million dollars it was supposed to pay. Ten years ago in December 2017. The interest payment period for the 1 billion dollar bond sale was two weeks ago, December 9, 2023. has been. The 14-day grace period after the payment deadline has also ended. However, the government announced that it will not pay the interest.

Hinjat Shamil, Senior Adviser on Reforms at the Ministry of Finance; Bloomberg reported this morning that they confirmed the payment had not been made and was not due.

Following this, Reuters reports that Ethiopia will join the ranks of two African countries that cannot pay their debts (entered into sovereign default). Two African countries that are said to be unable to pay their debts are Ghana and Zambia.

Government officials Ethiopia does not pay its debts; They often say that it is to “treat all creditors equally”. The Minister of Planning and Development, Dr. Perfect Asefa, three days ago in his meeting with Fana Television, which is close to the government; “Ethiopia has not paid the interest on Eurobonds, not because it has a problem of lack of foreign currency,” they agreed.

The minister added, “We are a country that pays several billion dollars a year for the goods we import from abroad, so we are not in trouble for the 30 million dollars we have not paid. In fact, Ethiopia is a country known for repaying its loans a lot, even in times of crisis.”

Dr. Perkhut pointed out that Ethiopia did not pay the interest of 33 million dollars because “all lenders and borrowers should be treated the same.”

This response of the minister was also echoed in the statement of the Ministry of Finance issued ten days ago. In the statement, the minister announced that Ethiopia did not pay the interest due to “treating all creditors equally” and not due to lack of foreign currency.

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