Ethiopia's loan reimbursement capacity growing: WB
Addis Ababa, 19 July 2014 (WIC) - The World Bank said that the growing capacity of Ethiopia to pay back loans has helped it secure huge supply of loan.
The Debt Sustainability Analysis of the World Bank indicates that the challenge the country faces in securing loan is simple as its debt burden is low.
World Bank Country Director Guang Z. Chen told ENA that the reimbursement capacity of Ethiopia is growing from time to time.
The growth of foreign direct investment and the relative increase of export trade are also among the factors cited.
Some eight projects were launched in Ethiopia last year by utilizing the 1.6 billion USD loan given to Ethiopia, it was indicated. This has raised the total number of projects supported by the bank to over 35.
It is possible to further increase foreign trade by adding export items and diversifying products, the Country Director said, adding that encouraging the manufacturing sector is essential to this.
The success attained in utilizing loans for the targeted objects has ensured the continuity of supply of credit, he added.
According to Chen, loans extended for agriculture, roads, safe water supply and similar programs are being finalized as per the schedules.
According to ENA, data obtained from the bank state that 20,000 hectares of land has been readied for irrigation development and WB has provided 2 billion USD in loan and donation for the expansion of roads since 1991.
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