Mereja.Forum

[Fiyameta]

Remember in 2024 when Ethiopia defaulted on $1 Billion Eurobond because it didn't have the $33 million monthly interest payment required by the loan agreement?

This is what happened.

10 years before it defaulted, In 2014 Ethiopia (TPLF) borrowed $1 Billion dollars from European investors (Eurobond) to build some parks in Mekelle and Addis Ababa. According to the loan agreement Ethiopia had to pay $33 million dollars in interest every month for the next 10 years, and at the end of the 10 year period pay the full $1 Billion dollars. Which means that Ethiopia had to pay $4 Billion dollars in interest on the $1 billion dollar loan or Eurobond.

[Abdisa]

Its interesting that when heavily indebted countries can no longer get additional loans from international creditors they seek to borrow from the UAE and become victims of predatory loans.