Ethiopia, Korea EXIM Bank Sign $70m Loan


Ethiopia and the EXIM Bank of Korea have signed a 70-million-dollar loan agreement that will be used to cover costs related to Novel Coronavirus (COVID-19). The loan agreement was signed between Ahmed Shide, minister of Finance, and Bang Moon, president of EXIM Bank of Korea. From the total value, 40 million dollars will be used to fill the budget deficit Ethiopia may encounter due to the expenses the government has accumulated in fighting the virus. The remaining funds will be used for the procurement of medical equipment that will be used for the prevention and treatment of COVID-19. The concessional loan the two countries have signed will be paid over a longer period of time, according to a statement from the Ministry of Finance.


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Parliament Nods for Cabinet Appointments

Federal legislators have approved five cabinet-level positions last week with a member of Parliament (MP) voted against and two abstentions were counted. Gedion Timotheos (PhD) leads the charge as the new minister of Foreign Affairs, filling in Taye Asqeselassie's shoes, where he stayed briefly before becoming the country's president. With law degrees from Addis Abeba and Central European universities, Gedion was previously Attorney General and Minister of Justice. Joining him in the redev...


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Abyssinia Group Eyes Expansion with IFC Funding

Abyssinia Group of Industries (AGI), a leading East African steel producer, is poised for significant expansion owing to a proposed investment from the International Finance Corporation (IFC) which is considering a financing package of up to 50 million dollars, including parallel loans in local currency. Headquartered in Kenya, AGI operates two steel plants in Ethiopia, six in Kenya, and has mining activities in Uganda. AGI currently produces 660,000 metric tons of steel annually and employs...


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Fitch Acknowledges Easing Financial Pressures, Enhanced Macroeconomic Stability

Fitch Ratings has upgraded Ethiopia's Long-Term Local-Currency Issuer Default Rating (LTLC IDR) to 'CCC+' from 'CCC-', citing easing financing pressures, improved macroeconomic stability, and increased confidence that local-currency obligations will not be part of the ongoing debt restructuring. This positive development comes as the government implements key reforms and secures renewed concessional external financing. The ratings agency has taken note of the introduction of a market-based ex...


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