According to Reporter Newspaper, for the purpose of carrying out its three-year economic strategy, the Ethiopian government requests a $12 billion loan.
The government has requested 12 billion dollars in funds to undertake the second indigenous economic strategy, according to Teklewold Atanafu, the prime minister’s economic affairs adviser.
Teklewold told the reporter that given the improving relations with Ethiopia, the nation’s main stakeholder in financial institutions like those in America, France, and other nations, Ethiopia is optimistic that the issue of loans and loan guarantees will be resolved after the necessary negotiations are finished.
He made the point that he will have time to negotiate for the money as he anticipates departing at the end of July, notwithstanding the restrictions placed on Ethiopia by the US Congress in 2018
The expert estimated that 12 billion dollars would come from the World Bank, the IMF, and Ethiopia by repackaging its foreign debt as part of the overall budget needed to carry out the three-year economic programme.
The anticipated sum of money, according to him, would be utilised to reduce the country’s deficit in foreign exchange from exports and other sources.
Teklewold stated that an important conversation will soon start in order to collect this money. He claims that the choice will be made based on how the talks turn out. In order to obtain the cash, he said, Ethiopia will be prepared to engage in negotiations and fairly address the demands made by the institutions.
He said, “In our projection, the distance between them and us is now quite narrow,” in response to the reporter’s inquiry on where to find the required 12 billion dollars.
There are demands that come with having money, therefore there must be conversation and agreement because it is not just about the money. He said.
Regarding the timing of the reform’s implementation, particularly in relation to the foreign currency system, he stated that there might be some dispute. He noted that if the talks go as anticipated, the loan might become available before the end of the European year.
Teklewold noted that although money was supposed to be provided by the World Bank and the International Monetary Fund, it was not made available. They said that more money would be made available if a deal were reached right away.