Addis Ababa – An Ethiopian delegation led by the Minister of Finance and Economic Development, Sufian Ahmed, went to China to negotiate a loan of over 400 million USD with the Chinese government to finance road and power projects in that country, AfricaNews reported.
The Commercial Bank of Ethiopia and Exim Bank of China would be responsible for the loan. Despite the economic instability various countries are experiencing amid the global financial slow down, development partners are releasing financial support in accordance with earlier promises, according to officials at the ministry.
The loan agreement would be used on different road and power projects the country is implementing. The financial support obtained from development partners is being spent on expansion of infrastructure, rural development as well as provision of basic service facilities.
Ethiopia will also benefit from the 400 million USD the world’s financial powers pledged at the London G-20 summit, Sufian Ahmed announced at the beginning of April.
In the boldest move of the G-20 summit, participants announced a tripling of loans available to the International Monetary Fund, to 750 billion USD, a 250 billion USD expansion in a special IMF fund to help members’ foreign exchange reserves, and 250 billion USD to the IMF to support trade. They also agreed to sell IMF-held gold to poor countries.
This significant shortage of foreign currency has become a major challenge to the importation industry that contributes around 12 per cent to the country’s overall economic growth, following the agriculture and service sectors, African news report.
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