Finance

Ethiopia state enterprises debt surpasses $5.6 billion

Debt of twelve state enterprises in Ethiopia surpasses $5.6 billion, according to the latest report of the state enterprises’ regulatory agency.

The latest report from Public Enterprises Assets and Administration Agency shows that until the end of last Ethiopian fiscal year concluded July 7, 2019, twelve state enterprises have taken a total loan of 110.6 billion birr (around $4.1 billion) from local banks and $1.5 from abroad.



During last budget year, the companies have paid back a total of 14.2 billion birr (around $518 million) loan for local banks, achieving 82% of their target for the period.

In addition, achieving 56% of their target, the state enterprises have also reduced their external loan paying a total $338.6 million excluding the interest, according to the report NewBusinessEthiopia.com obtained from the agency. Meanwhile the agency didn’t mention the names of the twelve companies.

Earlier reports show that Ethiopia electric and Ethiopian railways are among the highly indebted state enterprises struggling to pay back their debts, while Ethiopia Airlines and Ethio Telecom have been making huge profits for the past several years.