Managing Ethiopia's External Debt PDF Download

Author: Samuel Bekele
Publisher:
ISBN:
Category : Ethiopia
Languages : en
Pages : 66

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Author:
Publisher: INTERNATIONAL MONETARY FUND
ISBN: 9781451812732
Category :
Languages : en
Pages : 15

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Book Description
This paper presents key findings of debt sustainability analysis (DSA) for Ethiopia. The stress tests reveal that Ethiopia's external debt and debt service indicators are particularly sensitive to the terms of new borrowing and negative export shocks. The baseline projections appear fragile to adverse shocks and embody optimistic assumptions relative to Ethiopia's historical trend over the past 10 years. The public debt DSA indicates some risk arising from output growth and the primary balance remaining at historical averages.

Author: Tsegaye Ginbo Gatiso
Publisher: LAP Lambert Academic Publishing
ISBN: 9783659119552
Category :
Languages : en
Pages : 140

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Book Description
Ethiopia was among the first countries that applied for external loan from the then newly created IMF in the early post WWII periods. Before 1945, the country sought defense-related external assistances. In the post war periods, however, the need for external borrowings arises due to saving-investment gaps, export-import gaps and financing fiscal budget deficits. Nonetheless, the problem of debt burden is a post 1973/74 periods phenomenon. During the imperial period (pre-1973/74), the rate of growth exceeded the cost of borrowing; thus debt service obligations were honored without any strain. But the story went different during Derg Regime; the growth to debt correlation turned negative and reached the stage where the country cannot survive without it. During the post Derge periods, especially in the early 1990s, quarter of the government s total expenditure was financed from external grants and loans. In the years later, though the economy has performing vigorously but the burdens seem unrelenting. Hence, this study analyzed these facts by assessing the impacts of external debt on investment using time series macroeconomic data for the period 1974/75-2008/09.

Author: Brian Pinto
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Ethiopia was downgraded to high risk of debt distress in January 2018 based on the Low-Income Country Debt Sustainability Framework (LIC DSF), a finding reaffirmed by the updated 2017 Review of the LIC DSF, which was rolled out in the second half of 2018. This finding illustrates the shortcomings of the LIC DSF, which were supposed to have been addressed by the 2017 Review. The fundamental problem is a continued myopic focus on debt distress in relation to external public debt. In Ethiopia's case -- as with most LICs -- external debt distress is a symptom of unsustainable public debt dynamics driven by high fiscal deficits that spill over into current account deficits and external debt. Ignoring this fundamental causation results in basic development questions being left off the table. For Ethiopia, these questions include: (a) What would the government's debt dynamics look like in the absence of financial repression and overvalued exchange rates, both of which need to be corrected in order to improve the private investment climate as the Government prepares to hand off the growth baton to the private sector? And (b) will the large public investments in infrastructure pay off in terms of future growth and taxes in order to ensure fiscal solvency? The Government of Ethiopia needs answers to these questions as it implements its growth strategy and pursues its dialogue with donors and the private sector.

Author: International Monetary Fund
Publisher: International Monetary Fund
ISBN: 1451812701
Category : Business & Economics
Languages : en
Pages : 58

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This paper assesses Ethiopia’s economic progress under the Enhanced Initiative for Heavily Indebted Poor Countries (HIPC) Initiative, and seeks approval of the IMF staff for the completion point under the initiative. It reviews the status of creditor participation, the delivery of debt relief to Ethiopia, updates the debt sustainability analysis, and provides an analysis of the sensitivity of the debt indicators to changes in macroeconomic variables. Executive Directors determine that Ethiopia has reached the completion point under the Enhanced HIPC Initiative.

Author: Alekaw Yeshineh
Publisher:
ISBN:
Category :
Languages : en
Pages : 34

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Ethiopia's economy has continued growing and the major drivers of growth have been the services and agriculture sectors. However in recent years, the role of the industry sector is improving. Of the total growth, about 50 percent was contributed by the service sector while the contribution of the industry sector was about 39 percent in 2015/16. The high expenditure of public investment has worsened the incidence of inflation. Yet resources have not been efficiently allocated as evidenced by low scores of macroeconomic management rating and resource allocation indices. The widening current account deficit has made external financing necessary of which external borrowing has been the main one. External debt burden measured by ratio of stock of external debt to GNI has reached to 33 percent and external debt services to export ratio has been still higher than other countries. Ethiopian currency, the birr, has appreciated and affected export earnings by increasing the anti-export bias. The poor logistics and port infrastructures have also made export costly and adversely affected the export sector. Besides services export became negative due to increasing payments on debt services and payments on services being performed by foreigners in the domestic economic activities such as construction sectors.

Author: Meine Pieter van Dijk
Publisher: Eburon Uitgeverij B.V.
ISBN: 9059722671
Category : City planning
Languages : en
Pages : 259

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Author: World Bank
Publisher: World Bank Publications
ISBN: 1464816115
Category : Business & Economics
Languages : en
Pages : 227

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Book Description
International Debt Statistics (IDS), a long-standing annual publication of the World Bank, features external debt statistics and analysis for the 120 low- and middle-income countries that report to the World Bank Debtor Reporting System. IDS 2021 includes (1) an overview analyzing global trends in debt stocks of and debt flows to low- and middle-income countries within the framework of aggregate capital flows (debt and equity); (2) a feature story on the World Bank and International Monetary Fund Debt Service Suspension Initiative in response to the COVID-19 pandemic; (3) tables and charts detailing debtor and creditor composition of debt stock and flows, terms of new commitments, and maturity structure of future debt service payments and debt burdens, measured in relation to gross national income and export earnings for each country; (4) one-page summaries per country, plus global, regional, and income group aggregates showing debt stocks and flows, relevant debt indicators, and metadata for six years (2009 and 2015†“19); and (5) a user guide describing the tables and content, definitions and rationale for the country and income groupings used in the report, data notes, and information about additional resources and comprehensive data sets available to users online. Unique in its coverage of the important trends and issues fundamental to the financing of low- and middle-income countries, IDS 2021 is an indispensable resource for governments, economists, investors, financial consultants, academics, bankers, and the entire development community. For more information on IDS 2021 and related products, please visit the World Bank’s Data Catalog at https://datacatalog.worldbank.org/dataset/international-debt-statistics.

Author: Fantu Cheru
Publisher: Oxford University Press
ISBN: 0192546457
Category : Business & Economics
Languages : en
Pages : 872

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Book Description
From a war-torn and famine-plagued country at the beginning of the 1990s, Ethiopia is today emerging as one of the fastest-growing economies in Africa. Growth in Ethiopia has surpassed that of every other sub-Saharan country over the past decade and is forecast by the International Monetary Fund to exceed 8 percent over the next two years. The government has set its eyes on transforming the country into a middle-income country by 2025, and into a leading manufacturing hub in Africa. The Oxford Handbook of the Ethiopian Economy studies this country's unique model of development, where the state plays a central role, and where a successful industrialization drive has challenged the long-held erroneous assumption that industrial policy will never work in poor African countries. While much of the volume is focused on post-1991 economic development policy and strategy, the analysis is set against the background of the long history of Ethiopia, and more specifically on the Imperial period that ended in 1974, the socialist development experiment of the Derg regime between 1974 and 1991, and the policies and strategies of the current EPRDF government that assumed power in 1991. Including a range of contributions from both academic and professional standpoints, this volume is a key reference work on the economy of Ethiopia.

Author: International Monetary Fund. African Dept.
Publisher: International Monetary Fund
ISBN: 1475513259
Category : Business & Economics
Languages : en
Pages : 70

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Book Description
Ethiopia pursues a public sector-led growth strategy that focuses on promoting growth through high public investment supported partly by low nominal interest rates. While the strategy has contributed to robust economic growth in the past, recent developments indicate a buildup of vulnerabilities which need to be addressed in order to sustain this growth performance. While inflation remains high (21 percent at end-2011/12), real GDP growth, which is estimated at around 7 percent in 2011/12 and is projected to decline to 6.5 percent in subsequent years under the continuation of current policies, is still robust.