By Hailegebriel Endeshaw
ADDIS ABABA – (BORKENA) Regional Finance and Planning Bureau of Tigray said that it has given loan permission for civil servants in the Region. Ethiopian Insider said here yesterday that civil servants working for government offices in Tigray Region would get loan services from their respective offices. The maximum amount of loan will not exceed birr 4,000, according to the news source.
Ethiopian Insider said that all civil servants have not been paid their salaries for the last 21 months, ever since the Federal Defense Force left the area, June 2021. The paper wrote in its last week issue that as the Interim Government of the Region was not established based on the Pretoria peace agreement signed between the Federal Government and TPLF, the Ministry of Finance and Economic Development has not released finances to the Region.
The Regional Finance and Planning Bureau told Ethiopian Insider that it has responded positively to the demands forwarded by government offices regarding loan provision to workers. Bureau Head, Aregawi Gebremichael (Dr.) said that the offices, which have not yet received a budget from the Federal Ministry of Finance, were allowed to supply the loan from their respective accounts. Aregawi said that his office circulated a letter dated March 16/2023 to all Zonal, Woreda and Town administrations allowing the provision of the loans.
The letter sent to regional offices indicates that the loan to be released to the employees is refunded ahead from salaries. The letter has also pointed out that government offices and regional structures, which face financial problems might take loans from available sources.
The letter signed by the Bureau Head indicated that civil servants, who were stranded due to the civil war in the region, have long been in trouble. Until the offices get the budget, which enables them to pay salaries, they can provide their employees with the loans by drawing cash from their accounts.
Regional Finance and Planning Bureau also allowed through the letter the settlement of payments for those who were unable to get salaries of May and June of 2021 following the disruption of banking services in the region. The bureau further urged the government offices to do careful investigation before settling payments.
Of the total subsidy budget of 209.3 billion allocated for the 2015 Ethiopian Fiscal Year, the Federal Government has set aside 12.4 billion for Tigray Region, according to Ethiopian Insider.
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