HOPR Update: Ethiopia’s Reserve Holdings Reach Historic High, Says PM Abiy
Prime Minister Abiy Ahmed announced that Ethiopia’s current reserve holdings are unprecedented in its history, doubling since 2011 EC. He highlighted $3.5 billion in debt relief secured through negotiations and noted that while revenues reached 564 billion birr in eight months, expenditures exceeded income due to subsidies and salary increases. Efforts to address the cost of living and manage debt are ongoing.
Ethiopia’s Current Reserve Holdings Are Unprecedented in Its History
Prime Minister Abiy Ahmed (PhD) made this statement while responding to questions from members of the House of People’s Representatives.
Prime Minister Abiy Ahmed (PhD) stated that Ethiopia has never held as much reserve funds in its history as it does now.
The Prime Minister explained that after the macroeconomic reforms, Ethiopia secured a debt relief of approximately $3.5 billion through negotiations.
He noted that over the past eight months, Ethiopia generated 564 billion birr in revenue. However, due to extensive subsidies and salary increases, expenditures have exceeded revenues.
The Prime Minister highlighted that Ethiopia’s reserves were limited in the past but have now doubled compared to 2011 EC.
He also mentioned that in recent years, Ethiopia has been restructuring loans taken for unfinished projects to manage its debt burden.
While acknowledging that revenues do not fully cover expenditures, the Prime Minister stated that efforts are being made to address this, including budget allocations for fuel and fertilizers to regions.
To mitigate the high cost of living, the government is employing various solutions, and these efforts will continue, the Prime Minister assured in his response.
