IMF board to approve $2.9 billion loan, support “home-grown”economic growth

IMF staff agreed to provide Ethiopian with $2.9 billion loan to “support home grown economic growth.” 

IMF _ Ethiopia
State Minister for Finance, Eyob Tekaligne

borkena
December 12, 2019

Ethiopia is one of the countries in the world with too much debt. Worse, there does not seem to be a way to avoid more debt. It is like a story of a minimum wager with too much but still will have to live on a credit card with too little credit limit.

IMF has announced in a press release on Wednesday, check IMF Press Release No. 19/450, that staff-level agreement is reached to grant Ethiopia a $2.9 billion loan. The IMF board has to approve, and chances are that it will in view of the staff-level agreement.

The Fund will be supported by the IMF’s Extended Credit Facility (ECF) and Extended Fund Facility (EFF) and will be released over three years.

IMF team led Ms. Sonali Jain-Chandra had a working visit to Addis Ababa between October 29, and November 8, 2019, and they held discussions with the Ethiopian government officials, apparently to determine the financial package.

Ms. Jain-Chandra is quoted as stating “The Ethiopian government and the IMF staff team reached preliminary agreement, subject to approval by the Fund’s Executive Board, on policies that could constitute the basis for Ethiopia’s new program supported by the ECF and EFF arrangements. The overall objective of the program would be to support implementation of the authorities’ Homegrown Economic Reform Program.”

As in the traditions of Bretton Woods Institutions, the loan is conditional. The press release by IMF mentioned five pillars. Addressing foreign exchange shortage “durably” is one of the support areas.

And there is an expectation of transition to what IMF calls “a more flexible exchange rate regimes.” It has been rumored for several weeks now that Ethiopia was told to devalue its currency again. In 2017, Ethiopia devalued the currency exchange rate by 15%.

The multilateral institution framed the other “support” area as “Strengthening oversight and management of state-owned enterprises,” and the goal is “to contain debt vulnerability.” 

Abiy Ahmed led government has already introduced, albeit outcry from experts, measures to “privatize government-owned enterprises” (a liberal language to denote selling national public assets and it’s a virtue in liberal world view). To that end, Abiy has formed a council drawn from respected public figures in a move that seems to make selling assets like Ethio-Telecom and Ethiopian Airlines, among other things, appear not necessarily a bad thing. Now IMF will provide support in that area too.

Strengthening local revenue mobilization and expenditure efficiency, “the financial sector to support private investment and modernize the monetary policy framework” and financial safety nets are other support areas for the IMF.



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15 Responses to "IMF board to approve $2.9 billion loan, support “home-grown”economic growth"

  1. Hindia   December 12, 2019 at 8:20 pm

    Nothing will stop Ethiopia. Everything is in place now, all we need to do is be patient and let prosperity rain on us. If you see dark clouds and hear thunders you know it will rain soon , same as all we see and hear now is a guarantee prosperity is about to rain on us. Just open up your baskets , ready to accept all the prosperity we are about to be showered with , sooner than we anticipated. We should know acceptance is not easy for all, so we should start to get ready preparing on how we accept the prosperity . I will Empty my boxes with faith because prosperity will fill them up soon.

    Reply
    • Assta B. Getu   December 13, 2019 at 9:57 pm

      What Hindia said reminded me of what the previous Prime Minister Hailemariam Desalegn said to encourage Ethiopians to travel around Ethiopia, he said “Ethiopians should travel with a basket around Ethiopia and collect golds if they need money to start a business.” Sometimes I wonder if that’s what Hailemariam Desalegn is currently doing himself, since I don’t hear much about him lately.

      Reply
      • Hartford   December 17, 2019 at 10:23 pm

        Assta B. Getu

        The former PM Hailemariam Desalegn had a vision to become a board member of the International Crisis Group, who wrote the article above .We urgently need to mobilize intellectuals to join the board of the International Conflict Group so we can provide a truthful and well balanced realistic assessment to the International Crisis Group .
        International Crisis Group is a key entity since many international governments base their judgements on its assessments . We can stop many false accusations that are being made against us allover the world by joining the board of the International Crisis Group now. For quiet sometime now the International Crisis Group has proven to be credible so now it is our chance and duty to face PM H D in a round table and let our people’s voice be heard.If we cannot let our voices be heard at the International Crisis Group by challenging Hailemariam Desalegn then the intellectuals had let our people down . We seemed to have won but our victory but the victory is being snatched away from us right under our eyes at the international level , so we need to quickly head to where we are needed the most , right now before it’s too late .

        crisisgroup.org/who-we-are/crisis-group-updates/crisis-group-welcomes-hailemariam-desalegn-and-federica-mogherini-its-board

        Reply
  2. rezen   December 13, 2019 at 3:06 pm

    I was in a silent location when I read Hindia’s commentary above– especially the concluding sentence. I rushed out immediately from the silent atmosphere and relieved my thunderous beloved African laughter to my hearts content without bothering anyone >>> even though passers-by would consider me as one of the victims of Planet Earth.

    Reply
  3. rezen   December 13, 2019 at 8:35 pm

    Subject: IMF staff agreed to provide Ethiopian with $2.9 billion loan to “support home grown economic growth.” 

    Commentary, 13 Dec 2019
    To get a “loan” is not a new phenomenon in our world. And Ethiopia seems to have the good will of international communities from every angle.

    The crucial point, of course, the “loan” must be ‘paid’ in one form or another. During the colonial era there was no transaction but a take over of the entire country,, including the indigenous people, for indefinite period of time.
    But TIME changes and we have new and sophisticated arrangements for modern slavery.Now, the country which provides the “loan” has a sophisticated way of being the MASTER of the so-called ‘modern, >> liberated >>underdeveloped countries’. The “loan” may not be returned in cash but the entire country itself, with its people, are under the control of the magnanimous Lender. Look around. In every socioeconomic sector, the ‘Lender’ has the full control of the Life of the indigenous people — and in perfect harmony with indigenous dictators who relish the freedom, connection and power to enrich themselves like hungry animals. Africa is a perfect example — and will be so for the foreseeable future. By the way, don’t rely on ‘educated” African Scholars of the Top Most Highest Order to get together and save Africa from the yoke of modern times SLAVERY. THE END.

    Reply
  4. minas   December 14, 2019 at 6:50 pm

    Apparently, the photo of those protesting in the article by “Oromo” as slogan just before ousting of Weyane criss- rossing their arm is similar in the article. So, the Oromo society must read this article.

    As of now, with the situation going on around the world as well as in our country, it doesn’t matter, dr. Aby still needs to show us he would stop the growing Caste System/ Heirarchial rule that began in 1991. The continous of this You vs Me must stop but it will not stop due to strong domestic/foreign influence on the country.

    Reply
  5. minas   December 14, 2019 at 7:05 pm

    In relation to the top article, I always feel the Minillik/H/selassie era was the era of where people lived as they wish without interference, even though the country was poor due to not having the capacity and yet both of the kings started development by implementing phones, train, education, airlines ,etc. It is amazing they even accomplished that after 3 major wars the country was going through and the 4th is the current. I remember 2 years ago in Ethiopia, I have been in shock to hear from those whom they say Ethiopians and not claim to be during (student movement, Maison, Liberation Fronts) these individuals when I hear astonishing criticism of the kings makes me think, there have been secret people within those of Studen Movements, Liberation Fronts, Derg, Meirson, etc who have participated in it but no one knows their action because they insert themselves in these organizations or wait until the country implodes and take over the country. So I do feel apart from these obvious anti Ethiopia ethno fascists, there might be hidden groups who have been anti out kingdom because of revenge, because of they were the ones who needed to rule the country as kings and so on. An elderly whom I expected him to be true Ethiopian blurted out to me once when I said, the era of H/Selassie was the “era of innocence”, he then replied “no, it was the era of the fools”. I guess he meant to say, the people were fools to be ruled by the king. Did he really think 20 million Ethiopians killed by Liberation Fronts and still continuing is the era of great? He may be benefiting from it.

    Reply
  6. minas   December 14, 2019 at 7:10 pm

    The article above I don’t know why he talked about Israel criticising it, when in facts such fascism is all over, in other countries the most!

    Reply
  7. Ephrem Woldekidan   December 15, 2019 at 10:42 am

    Hindia

    There is no use arguing with these Facebook soldiers hired by TPLF. These facebook soldiers know what they say is not correct, they say it because they are ordered to say it for money .Please don’t waste your time talking with these losers .

    Reply
  8. mimas   December 15, 2019 at 11:27 am

    Ethiopian people are being deliberately distracted and being tricked, if not dr Aby, liberation fronts in coordination shabia, tplf, olf are working hard behind the so called Dr Aby, working with their Masters. It looks like, Aby is a toy putting him in the front and both Masters and
    Iberation fronts working hand in hand. It seems apparent, tplf was greedy before wanted the whole pie for itself. Now, Olf in conjunction with shabia wants the whole piece of Ethiopia. When/if jawar is not able to achieve that they want to make sure, their Masters also share the piece of pie.

    When you find that the usual suspects (certain foreigners aka masters) want you to be in power or support you, it means trouble. If they choose you, it means you have some weakness that upon being a leader/chosen to be a leader, there will be blackmail to give in to enslave/take natural resources. While Aby is distracting the population with “sweet words”, Nobel price, etc, right now foreign elements have already occupied Afar and Abay region! What made Ethiopia survive from her natural resources is being controlled. The liberation fronts who are mercenaries exactly the reason they hate our kings because, these mercenaries are slaves of their owners so that they can just be getting benefit the masters throw them while putting people under abject poverty, slavery, natural resources taken. This is the reason they go around attacking anti colonialists, Minilik H/selassie.

    It also looks like how even the pro EEthiooia homogeneous Amara region might have given in too, it is suspicious to allow tiny tplf to control the entire Eethiopia, seems that the greed to control for power, are making Ethiopia vulnerable to outside.

    Reply
  9. Woyane2   December 16, 2019 at 9:54 am

    Amhara is gonna kill us , am afraid and pissing with fear monting to phobia;

    Your warmoners and fulltime mudrers are gonnba wage war if we make Tigray independent and Great Country !

    funny outcry time will tell if you banda spies are gonna invade us killers monarchy is not gonna be restored . Viva Oromo and Jawar!!

    According to some experts , taking a lon from IMF is to give full authorization to IMF to shape Ethiopia’s economic, defense and social policy .And we are compelled to limit our defense spending, increase taxes, decrease social spending etc.
    Though the majority of the members of the IMF are from the less developed countries of Asia, Africa and South Africa, the IMF is dominated by the rich countries like USA. It is said that the policies and operations of the IMF are in favor of rich countries.
    ) The IMF has created an immoral system of modern day colonialism that SAPs the poor.

    Sum up, we are left to sink deeper and deeper in the quagmire of a huge debt(loan) and unquestionably immersed into the modren era colonization , thanks to prosperity Party and the ringleader Abiy.

    PS: Our future and that of our next generation is now deteriorated by this fake illegal Party, socalled prosperity . Since we are nopt able to pay it back soon and our land and resources will be sold constantly, nonstop , to the money minded and savage capitalists whose God is Money and artillery.

    Reply
  10. minas   December 16, 2019 at 12:40 pm

    Woyane2
    You said,

    “According to some experts , taking a lon from IMF is to give full authorization to IMF to shape Ethiopia’s economic, defense and social policy .And we are compelled to limit our defense spending, increase taxes, decrease social spending etc.
    Though the majority of the members of the IMF are from the less developed countries of Asia, Africa and South Africa, the IMF is dominated by the rich countries like USA. It is said that the policies and operations of the IMF are in favor of rich countries.
    ) The IMF has created an immoral system of modern day colonialism that SAPs the poor.”

    Really? What were you yourself doing in the past 27 years?

    Reply
    • Woyane3   December 17, 2019 at 8:31 am

      minas leba

      At first, try to brush up your english ! komata , he-donkey suffering from leprosy and narcissism.

      Incarnated devil. You donot know to justify your argument except calling names. You and your church is full of lies and crimes. There are many untold stories about your tribe and your church enslaved by Egyptians . You were sending slaves , ivories ,gold bars , etc.

      Amhara emperors were selling you and your ancestors to the western world to get weapons in return.

      now, you are going against us and spying and worshiping your colonial masters. There are many saints in your church who donot exist and not known to the western world religious scholars. Egyptians and other missionaries were playing a filthy game on you for centuries. That is a reason why you are downgrading your race and fellowmen and kissing up whites. lies and jealousy are your second nature. ekekam !!!

      Vagabond

      Reply
  11. Jealous Amara??? kikiki   December 18, 2019 at 1:28 am

    I am so not jealous of Getachew Assefa the Woyane because he is on a hospital bed ready to join the woyane demonic patriarch that died with Melese Legesse Zenawi. .

    Woyane got no authority to talk about Ethiopian church as you migrated from Yemen, till this day unable to leave your satanic nature behind, .

    Your history s when you follow Prophet Mohammed’s camel to Ethiopia living in your dark world for ages.with your pentagram Satanic flag .

    Axum and the rest is Amara’s history , woyane migrated from Yemen To Ethiopia cause you are evil everywhere to everybody everytimes, noone wants to live amongst woyanes . .

    Reply
  12. yewoyane selay   December 19, 2019 at 9:13 am

    Bedinkay ketkito sew yemigedil ye sytan new

    your priests are servants of satan , Devil. You are the living remnants of demons where thrown to earth . You stoned many people to death. You poisoned people during the holy communion. I kenw many people who died instantly inside your church. Your patriarch , Abune Mokorios , was the fan of Derge and believed to hold pistols in his hand and he had the derge membership card like some of priests and pastors. Melaku tefera, amhara killer, killed and tortured many gonderes including the gonder bishop.

    So, You amharas are savage and brutals even to your own tribal members, let alone to Woyane and Tigray people.

    Derge killed many innocents in Hawzen and telling us that he was killing TPLF fighters just like the current powerful states kiled innocent children at home and blame ashebraiwosh who came from california and other westren countries who helped these entities to rob the resources they found in this arab world.

    gimatam ekekam ahya amhara hodu amlaku

    Reply

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