Public Enterprises Underperform Debt Servicing

Nov 30 , 2019

The Ministry of Finance reported that two public institutions failed to service loans in the first quarter of this fiscal year. In its report to parliament, the Ministry mentioned the Addis Abeba Water & Sewerage Authority (AAWSA) and the former Ethiopian Airports Enterprise have failed to pay back their loans. In the reported period, the Ministry expected that all of the state-owned enterprises would service 245 million Br in debt. However, only 62 million Br was paid by enterprises, 25pc of the target. Ethiopia currently has an overall external debt of 27 billion dollars, out of which it was able to service more than 9.4 billion Br in the last fiscal year. State-owned enterprises owe 11.2 billion dollars in the external debt burden, while the federal government owes the remaining.