Liability Corporation Inks Deal to Soak up 400b Br Debt

Aug 21 , 2021

The newly established Liability & Asset Management Corporation has inked a deal with six state-owned enterprises to soak up 398.7 billion Br in debts belonging to five state-owned enterprises. The debts are owed to the state-owned Commercial Bank of Ethiopia (CBE) in the form of corporate bond. The Corporation, led by Mulalem Getahun, its deputy CEO, signed an agreement with officials of the Ethiopian Electric Power (EEP); the Ethio-Engineering Group (EEG), the former Metals & Engineering Corporation (MetEC); the Chemical Industry Corporation (CIC); the Ethiopian Railways Corporation (ERC); and the Ethiopian Sugar Corporation (ESC). EEP has a total of 370 billion Br in outstanding debts, by far the largest from among the cosigners. Railway Corporation and Ethio-Engineering follow with 120 billion Br and 74 billion Br, respectively. The Sugar Corporation is a little over 70 billion Br in debt. The Corporation was established earlier this year to soak up close to 570 billion Br in debts owed by government enterprises. It will soon be signing additional deals with the SOEs to soak up debts owed to international lenders.