By Hailegebriel Endeshaw
Staff reporter
ADDIS ABABA – (BORKENA) – Ethiopian Government has taken about 100 billion birr from National Bank as direct advance payment in six months, sources said. The Amharic Weekly Reporter said that the government has taken a loan of birr 40 billion as direct advance payment in the second quarters of 2015 Ethiopian Fiscal Year. Together with the 60 billion birr direct advance, which the government has borrowed during the first quarter of the budget year, the total amount reached 100 billion birr, according to Reporter.
It is to be recalled that the direct advance payment taken by the government in 2014 Ethiopian Budget Year was 76 billion birr. Comparing this with the direct advance payment of the current budget year, there shows a rise by 32 percent.
As indicated in the second quarter report released last week by the Ministry of Finance, the three-year total direct advance payment (taken by the government) rolled back to this day, which was 236.5 billion birr has turned into a long-term bond. Accordingly, the total amount of the long-term bond loan taken by the government has increased to 433.9 billion birr, the report said. Similarly, the 187.2 billion birr direct advance payment taken by the government in 2012 Ethiopian Budget Year has turned into a long-term bond pushing the loan to 199.2 billion birr. Though the government cleared the loan at minimum rate in 2013 and 2014 Ethiopian Fiscal Year, the total rate taken has remained 197.9 billion birr by the end of 2014 E.C
Deputy Chief Governor of the National Bank of Ethiopia, Fikadu Degiffe, told the Reporter that the direct advance has turned into a long-term bond. The payment given to the government this year is the largest of all advance payments released previously.
The Ethiopian Government allocated 786.6 billion birr budget for the current Fiscal Year. Minister of Finance and Economic Development, Ahmed Shede said while presenting a report to the House of Peoples Representatives that of the allocated budget, over 300 billion birr deficit was expected. Ahmed raised the issue of utilizing sales of treasury bills, direct advance and other alternatives to fill the budget deficiency.
In order to supply direct advance payment (loan), the national bank is obliged to print money. This means the amount of ‘money’ should be increased or rather new money is created to supply the loan or the advance payment. However, the fact is that printing more money and releasing it into the market will never increase the economic output. Of course, it increases the amount of money, which is circulating in the economy. The principles of Economy teach us that if money is printed, customers are able to demand more goods. Printing too much money, where there is no boost of goods in the market, surely creates an uneven playing field for demand and supply. This undoubtedly pushes up prices of the goods.
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The Ethiopian Economy under abiy and his pp is in tatters. Inflation is highest n Ethiopia than in any other African or Sub Saharan African country.
The pm is an incompetent neophyte and die hard oromumma fanatic himself. His five years of track record has proven that clearly and unequivocally every day since his sudden arrival to the political arena. The biggest loser in all this saga is none other than the neophyte in office who can cling to his throne only by obfuscation, demagoguery and violence.
abiy’s Reign of Terror has killed more Ethiopians than all other Ethiopians who died in Adwa war, the second Italian war of aggression against the motherland in 1930s, the Somali Ethiopian war of the late 1960s and early 1970s, the derg war against Eritrea and the Eritrean Ethiopia war of Meles era COMBINED!!!!!!!!!! Ironically, this war monger is a Nobel prize laureate.
The Ethiopian economy is in tatters. abiy hates and fears professional economists and real PhD holders because they quantify and divulge his lies in real numbers. They expose his fraudulent “mega construction” frauds that siphon billions of dollars from Ethiopian coffers. abiy’s administration is corrupt; he is morally repugnant, unethical, barbaric, unprincipled and incapable of rising to the occasion. he never managed and will never be capable of transforming himself into a statesman.
In the past thirty years, by deliberately undercounting the Amhara population which is almost as large as the oromo both tplf dominated eprdf and oromumma dominated pp have denied hundreds of billions proportionally due in the budget for the Amhara population ( the 1984-85 extensive census conducted by the derg had oromo at 29.1% and the Amhara at 28.3%, birth rates and migratory practices of a nation are stable over time and everybody and any statistician worth a dime can extrapolate and identify the lies of tplf and olf goons including the incorrigible abiy and his pp sycophants). Ironically, despite all these biases and favoritism, the oromo was at the bottom of the achievement ladder in the recently completed national exams for college entry. Similarly, despite 30 years of embezzlement, tplf still kept over 2 million people in Tigray region under chronic poverty, food security net, basically making them not self sufficient.
Elsewhere in Ethiopia, the Somali region which is over 6 times the size of Tigray virtually got nothing under TPLF rule. The so called SNNPR region comprising nearly 45 million people in Ethiopia with the highest ethnic subdivisions totaling close to 70 got nothing either.
Today, under abiy and pp, the oromumma goons want to steal everything that belongs to Ethiopians for their greedy pp embezzlers and thieves. They control 97.5% of the federal parliamentary seats. In fact one will need a set of binoculars to identify the opposition party members in a sea of pp members who are over 530/ 547. abiy and pp members are 100% responsible for all the problems happening in Ethiopia on abiy’s watch.
Just like their mentors the golf, abiy, shimeles, adanech and cohorts of pp have nothing to offer the millions of youth in so called oromia. And these pp goons and oromumma fanatcis have over promised what they cannot deliver. For now they will use divide and conquer to stay in power to steal and embezzle.
The writings are on the wall. Everyone look at these abysmal numbers that tell you the actual status of the economy.
The loquacious motor mouth speaks about wheat incessantly, ad nauseaum 24/7. Ok let’s do some real numbers.
Ethiopia’s annual wheat production was about 4,838,000,000 kg in 2018 ( before abiy)
Ethiopia’s annual wheat production was about 5, 700,000,000 kg in 2022 ( during wheat production hype of abiy)
The difference is about 862,000,000 kg. At 31 cents / kg, that will translate to an export income of at most 262 million US dollars. Assuming entire amount produced in 2022 gets exported, it is a maximum of about 1.5 billion US dollars in cereal export income. In reality because of inherent market biases against sub Saharan Africa, Ethiopia, especially under the incompetent appointments of the abiy pp regime, will not even manage to negotiate the 31cents per kg wheat global price. To meet domestic demand estimated at 29 kg per person per year, the allocation for domestic consumption will be about. 2,900,000,000 kg. That will mean the net export income from wheat despite abiy’s hoopla is only about 750,000,000 US dollars. Coffee export generates about 1,500,000,000 US dollars. The max from coffee and entire wheat export will be about 4. 5 billion dollars. Yet the foreign remittances from the diaspora stand at yes 6.5 billion, 2 billion US dollars more than the entire wheat and coffee exports combined.
THESE ARE THE REALITIES THE MOTOR MOUTH AND LIAR IN CHIEF DOES NOT WANT TO ACKNOWLEDGE OR EVEN DOES NOT GRASP IN DETAILS. HENCE HIS HATRED OF FACTS, DATA DRIVEN ANALYSES, PHD ECONOMISTS, ANY CRITICS OF HIS GOVERNMENT AND HIS ILL DEVISED ECONOMIC AND SOCAIL POLICIES BECAUSE THEY EXPOSE HIM AS A DEMAGOGUE, A LIAR, INCOMPETENT IDEOLOGUE, WHO BLINDED BY HIS OROMUMMA FANATICISM AND GRANDEUR OF ILLUSION IS MURDERING HUNDREDS OF THOUSANDS, DISPLACING TENS OF MILLIONS AND CREATING CHAOS DAY IN DAY OUT FOR THE PAST 5 YEARS.