Ethiopia Plans to Introduce Secondary Bond Markets Next Tax Year

Bloomberg
by William Davison
March 29,2015

Ethiopia will develop a secondary market in government and corporate bonds next fiscal year to expand the country’s fundraising options, a central bank official said.

The National Bank of Ethiopia will create the market in the year ending July 7, 2016, Yohannes Ayalew, vice governor of monetary stability, said in an interview Sunday in Addis Ababa, the capital. Ethiopia, which has capital controls and no stock exchange, sold $1 billion of Eurobonds for the first time in December.

“Rather than resorting to central bank borrowing the government can use this instrument to finance most of its” requirements, he said in an interview Sunday. “The equally important reason is corporations and new investments can get alternative means of issuing bonds and financing their needs.”

Ethiopia doesn’t plan other significant monetary policy changes, Yohannes said.

To contact the reporter on this story: William Davison in Addis Ababa at wdavison3@bloomberg.net

To contact the editors responsible for this story: Mike Harrison at mharrison5@bloomberg.net Tony Barrett, James Amott

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