Fitch Acknowledges Easing Financial Pressures, Enhanced Macroeconomic Stability


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 exchange rate and the introduction of an interest-rate based monetary policy regime, saying the measures aim to reduce financial repression and contain inflation. Also a factor is the decreased reliance on domestic financing owing to expected disbursements from the World Bank and the International Monetary Fund’s (IMF) new four-year Extended Credit Facility Arrangement with an immediate disbursement of one billion dollar from a total 3.4 billion dollar  funding. Ethiopia is also phasing out non-market-based financing of fiscal deficits, with NBE conducting market-based auctions of treasury bills. While Fitch notes that Ethiopia remains in default on its foreign-currency debt obligations, it has made progress on its external debt restructuring under the Common Framework. Negotiations are ongoing, and the government is expected to reach an agreement with the official creditor committee by the end of 2024. Fitch concludes that overall Ethiopia's economic outlook is improving, with easing financing pressures and a renewed commitment to reform. However, challenges remain, including the ongoing debt restructuring and potential rollover risks as borrowing costs rise.

[ssba-buttons]

Radar

Nib international Bank Faces Heavy Hit from Forex Revaluation, Pays 348 Million Br in Penalties

Nib International Bank S.C. (NIB) has reported a significant loss of 2.9 billion Br, primarily due to extraordinary foreign exchange revaluation losses this past Saturday, during its annual shareholders meeting at the Millennium Hall on Africa avenue, Airport Road. The bank faced substantial penalties amounting to 348.4 million Br. These penalties included a 251 million Br fine for liquidity shortages and a 97.4 million Br charge for violations related to Real-Time Gross Settlement (RTGS) paymen...


Radar

Railway Network Upgrade Positioned as Engine of Economic Transformation

The National Railway Business Summit took place at Skylight Hotel on October 21, 2025, signalling a historic step in modernising its railway network as a foundation for national development and regional connectivity. Government officials, industry leaders, investors, and experts from around the world convened to discuss infrastructure expansion, financing models, and technology adoption. Asma Redi, chief portfolio director at Ethiopian Investment Holdings, noted that the Ethiopian Railways Co...


Radar

Gold Prices Ease After Recent Surge

The price of gold, which surged sharply in recent weeks, has started to decline in the current selling market. Over the past 15 days, 21-carat gold has traded between 24,000 and 25,000 Br per gram for imported products and around 21,000 Br for local gold. Imported 18-carat gold sold for 21,000 Br, while local 18-carat pieces were priced at 19,000 Br. Traders note that the recent increase was twice as high as typical fluctuations, attributing the spike to export patterns from Arab countries. ...