Ethiopia Forces it's Banks to help pay for Djibouti Port Fees

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merka

Somaliland Sovereignist
VIP
This is a great opportunity for Somali financial firms and banks to take advantage and attract Ethiopian businesses to keep their money out of the reach of their government.

@waraabe @LarryThePuntite @GeKo

https://addisfortune.net/articles/central-bank-instructs-banks-to-pay-shippings-bill/

Central Bank Instructs Banks to Pay Shipping’s Bill

By SAMSON BERHANE

The National Bank of Ethiopia (NBE), the watch dog of financial institutions, directed all of the private banks to pay the 15 million dollars bill of the Ethiopian Shipping Logistics Services Enterprise (ESLSE) to Djibouti’s company.

The money will be used to pay the debt of the Enterprise for the port of Djibouti. The order comes amidst the shortage of foreign exchange throughout the country, which put businesses in a tight situation, and a decline in export earnings and remittance - which are the primary source of foreign currency.

All of the financial institutions including a Commercial Bank of Ethiopia (CBE) sold the exchange to the state monopoly. All the private banks deposited the money to a foreign bank and received a payment from CBE. The banks were given three days to sell the foreign currency to the Enterprise from August 28, 2017.

“It is sudden and unprecedented,” said one of the executives of private banks, who wished to remain anonymous. His bank was ordered by NBE to sell over a million dollar to the shipping giant.

The directive of foreign currency allocation entails all banks must sell foreign currency to a sector whose importance is very high. The banks are required to give priority to payments authorised by the central bank such as foreign loan, supplier’s credits, interest, profit, dividend and excess sales of foreign airlines.

Hence, all banks are required to sell the currency collected from importers, although the current direction is high, according to a banker with almost two decades of experience.

“Even though I agree with the fact that we shared the responsibilities with CBE,” said one of the vice president of a mid-sized bank. “But requesting such amount of Forex in a short time might lead to crisis.”

Yohannes Ayalew (PhD), vice governor and chief economist of the central bank, disagrees.

“It is a collective responsibility of all banks whether the call was quick or not,” said Yohannes. “There is no reason for asking CBE to cover all the payments."

The Forex shortage in the country has been haunting the country for years. Prime Minister Hailemariam Desalegn, in his press conference with local media nine months ago, admitted that the Forex crunch would last for the coming two decades.

This, exacerbated by a drop in export earnings put the country under foreign currency crises, according to a banking expert.

“The actions of central bank show the problem is far from over,” said a banking veteran with three decades of experience, who is surprised with the incapacity of CBE to cover the 15 million dollars for the Bank. “Nevertheless, the action is logical considering the burden of CBE.”

Founded seven decades ago, CBE collected 4.5 billion dollars from remittance and export during the past fiscal year.
 
This is a great opportunity for Somali financial firms and banks to take advantage and attract Ethiopian businesses to keep their money out of the reach of their government.

@waraabe @LarryThePuntite @GeKo

https://addisfortune.net/articles/central-bank-instructs-banks-to-pay-shippings-bill/
What you don't understand is that they pretty much forced banks to exchange their USD holdings for Ethiopian birr. Ethiopia has a shortfall of USD's because of the many development projects going on throughout the nation.

The private banks are all owned by Ethiopians so this directive can be easily made. Foreign banks are not allowed to operate in Ethiopia at all.

Ethiopia is scheduled to join WTO next year, so foreign currency will no longer be a problem.

Ps Ethiopian businesses would not put their money into foreign banks, especially Somalias bank lol. Plus Most businesses are intertwined with the government.
 

merka

Somaliland Sovereignist
VIP
What you don't understand is that they pretty much forced banks to exchange their USD holdings for Ethiopian birr. Ethiopia has a shortfall of USD's because of the many development projects going on throughout the nation.

The private banks are all owned by Ethiopians so this directive can be easily made. Foreign banks are not allowed to operate in Ethiopia at all.

Ethiopia is scheduled to join WTO next year, so foreign currency will no longer be a problem.

Ps Ethiopian businesses would not put their money into foreign banks, especially Somalias bank lol. Plus Most businesses are intertwined with the government.
Nothing scares investors more than a money hungry government.

The banks don't necessarily have to be in Somalia. Djibouti and hopefully Somaliland will be able to make themselves more attractive to people wanting to invest in Ethiopia.

They'll be to Ethiopia like how Hong Kong and Taiwan is to China. The financial entry point into the Ethiopian economy :cool:
 
Nothing scares investors more than a money hungry government.

The banks don't necessarily have to be in Somalia. Djibouti and hopefully Somaliland will be able to make themselves more attractive to people wanting to invest in Ethiopia.

They'll be to Ethiopia like how Hong Kong and Taiwan is to China. The financial entry point into the Ethiopian economy :cool:
You kind of have a rudimentary understanding of FDI. These bussinesses already have their own money to invest with, since most are international companies. I could see Djibouti taking off as an international trans shipment hub, but not financial.

Djibouti will be so heartbroken when this occurs, shortly after the fall of the Eritrean regime.

Only 80ft of cliff side stops this from occurring without a canal. Increased seismic activity makes this inevitable...

:trumpsmirk::lolbron:
 
Nothing scares investors more than a money hungry government.

The banks don't necessarily have to be in Somalia. Djibouti and hopefully Somaliland will be able to make themselves more attractive to people wanting to invest in Ethiopia.

They'll be to Ethiopia like how Hong Kong and Taiwan is to China. The financial entry point into the Ethiopian economy :cool:
There's already a huge capital flight happening in ethiopia due to the oromo protests. Africaintelligence reported a while back that investments will be down in ethiopia due to the tainted effects of the protests and how diplomats and foreign investors are banned from traveling to certain areas.
 
There's already a huge capital flight happening in ethiopia due to the oromo protests. Africaintelligence reported a while back that investments will be down in ethiopia due to the tainted effects of the protests and how diplomats and foreign investors are banned from traveling to certain areas.
Ethiopia sees 20 pct increase in FDI inflows in 2016/17 fiscal year

http://news.xinhuanet.com/english/2017-09/07/c_136592286.htm

Ethiopia prepares for construction of $51m ethanol plant

https://www.esi-africa.com/news/ethiopia-prepares-construction-51m-ethanol-plant

Ethiopia Attracts $3.8 billion FDI in 2016/17

https://www.ezega.com/News/NewsDetails/4676/Ethiopia-Attracts-3-8-billion-FDI-in-2016-17
 
Ethiopia sees 20 pct increase in FDI inflows in 2016/17 fiscal year

http://news.xinhuanet.com/english/2017-09/07/c_136592286.htm

Ethiopia prepares for construction of $51m ethanol plant

https://www.esi-africa.com/news/ethiopia-prepares-construction-51m-ethanol-plant

Ethiopia Attracts $3.8 billion FDI in 2016/17

https://www.ezega.com/News/NewsDetails/4676/Ethiopia-Attracts-3-8-billion-FDI-in-2016-17
:deadmanny: :drakelaugh:

+80% of that FDI was DEBT......

ethiopian debt 10 minutes ago

GDP this year (PPP) - $119 304 282 096

GDP this year per capita (annual $1 637) - $1 137

GDP today - $394 525 361

GDP today per capita - $4

Total National Debt (Public Debt) $42 052 209 874

Total National Debt per capita - $401

National Debt this year - $2 954 831 504

National Debt today - $0.99083

tigray men lie, tigray women lie, but numbers don't lie.


:trumpsmirk:
 
:deadmanny: :drakelaugh:

+80% of that FDI was DEBT......

ethiopian debt 10 minutes ago

GDP this year (PPP) - $119 304 282 096

GDP this year per capita (annual $1 637) - $1 137

GDP today - $394 525 361

GDP today per capita - $4

Total National Debt (Public Debt) $42 052 209 874

Total National Debt per capita - $401

National Debt this year - $2 954 831 504

National Debt today - $0.99083

tigray men lie, tigray women lie, but numbers don't lie.


:trumpsmirk:
First it was an exodus of investment, now your narrative is that it's debt....you're a funny person. You can never admit to being wrong. The other funny thing is that debt/loans don't count as FDI...

Ethiopias debt is still lower than the worrying mark of around 50% of GDP and has lower debt than many other countries, such as Sudan.

The good thing about Ethiopia's loan use is also that it's spent on infrastructure which has tenfold returns.

Take a look at this https://www.google.com/amp/s/amp.th...0/somalia-debt-arrears-children-starve-famine

Somalia will be paying Ethiopia in the near future...that is if we ever leave Somalia.
 
Ethiopias debt is still lower than the worrying mark of around 50% of GDP* and has lower debt than many other countries, such as Sudan.
The good thing about Ethiopia's loan use is also that it's spent on infrastructure which has tenfold returns.**

Take a look at this https://www.google.com/amp/s/amp.th...0/somalia-debt-arrears-children-starve-famine

Somalia will be paying Ethiopia in the near future...that is if we ever leave Somalia.
tigray untermenschen, how exactly do you think all ethiopian infrastructure has been paid for? It hasn't, it's still debt until the very last final payment. Imbecile.

* http://ayyaantuu.net/ethiopian-public-debt-stood-at-55-of-the-gdp/

You post an article about famine to divert from your lack of knowledge. Typical woyane strategy. Let's see what else you're wrong about.

** You contradict yourself there bud. Please show me evidence of how ethiopia's infrastructure debt will have a tenfold return.
You can't even run the addis-djibouti train enough to cover the basic repayments......
https://www.africaintelligence.com/...soaring-tempers-about-the-train,108258746-ART

While all the work on the railway appears completed there's not enough electricity for the line to start running normally.
:dead1::mjlol:
 
tigray untermenschen, how exactly do you think all ethiopian infrastructure has been paid for? It hasn't, it's still debt until the very last final payment. Imbecile.

* http://ayyaantuu.net/ethiopian-public-debt-stood-at-55-of-the-gdp/

You post an article about famine to divert from your lack of knowledge. Typical woyane strategy. Let's see what else you're wrong about.

** You contradict yourself there bud. Please show me evidence of how ethiopia's infrastructure debt will have a tenfold return.
You can't even run the addis-djibouti train enough to cover the basic repayments......
https://www.africaintelligence.com/...soaring-tempers-about-the-train,108258746-ART



:dead1::mjlol:
Look you primitive beast, your original argument was that capital flight was occurring, which I went on to prove that's not the case.

The second argument was on loans being FDI, which doesn't even make sense.

Last but not least infrastructure does have tenfold returns as it increases business and development, a simpleton like you should at least understand this. Each infrastructure project will increases GDP by a few % , depending on their size and scope.

Investments in infrastructure, particularly transportation projects, may have significant impacts upon economic productivity. Governments make investments in transportation facilities to support development, to spur economic growth, to alleviate existing deficiencies, or to increase public convenience.

You posted an article that you surely didn't read. It's about Djibouti complaining about having to pay for electricity for their side of the railway.

Ethiopia will become fully industrialized within the next 30 years. Where will Somalia be in 30 years? We both know the answer....
 
Someone's raw nerve got touched, does the truth hurt?

Numbers don't lie fella. Your FDI is public debt. That's why every habashi is indebted by $400, EACH.

Look at what I already posted. You don't even have enough electricity to run your heavily indebted train line, with payments coming up soon, which is expecting electricity from the Dam that's only 60% finished, which is itself heavily leveraged debt...

Where will Somalia be in 30 years? We'll still be a nation, unlike some who're managing a sinking ship...

:lolbron::hillarybiz::lolbron:
 
Someone's raw nerve got touched, does the truth hurt?

Numbers don't lie fella. Your FDI is public debt. That's why every habashi is indebted by $400, EACH.

Look at what I already posted. You don't even have enough electricity to run your heavily indebted train line, with payments coming up soon, which is expecting electricity from the Dam that's only 60% finished, which is itself heavily leveraged debt...

Where will Somalia be in 30 years? We'll still be a nation, unlike some who're managing a sinking ship...

:lolbron::hillarybiz::lolbron:
The big problem they have is that they don't even have the infrastructure to take advantage of this dam, they're only making this dam to sell to neighboring countries which makes no sense.
 
The big problem they have is that they don't even have the infrastructure to take advantage of this dam, they're only making this dam to sell to neighboring countries which makes no sense.
What are you talking about? There's too many infrastructure projects to even count around the country. I will list just a few off the top of my head, Addis-dj railway, awash-mekele railway, 15 industrial parks, the 10k new buildings, the potash plant (1billion in revenue/yr), the ethenal plants at each sugar factory, 10 new sugar factories, the cement factories, the expected doubling of passenger handling at the new Addis Ababa airport, the over 50k km of new roads and highways, and finally the expansion of electricity use to the entire country.

Ethiopia will generate over 1billion each year by selling 2k mw to its neighbors, which will go to paying back loans.

We are following the korean model of development, with sprinkles of Chinese style.
 
The big problem they have is that they don't even have the infrastructure to take advantage of this dam, they're only making this dam to sell to neighboring countries which makes no sense.
Absolutely.

The thing about the tigray, is that they are quite stupid, because they've bought into the lies they tell the world about the mythical economic growth.

The tigray don't have the capacity to realize, that they're unintentionally setting up the stage for wars in and against Egypt, Sudan, South Sudan (backed by Uganda,) Djibouti and even Somalia, by damming the Shabelle and Juba rivers, which will unite all the qabil's living in those area (which is just about everyone.)

The most interesting area within tigray's approaching demise, comes from Kenya, which will soon leave the original defense pact with ethiopia, because the tigray have drained lake turkana. The turkana people are not only in the process of arming and creating resistance groups against the kenyatta government due to the river, with the already approaching civil war due to the elections adding to the pressure cooker,) but because those same turkana people sit on the only viable oil resources in Kenya, and they're refusing the government to drill as long as the tigray keep lake turkana drained.

tigray's entire future rest's on whether kenyans and sudanese appreciate habashi electricity more than their own oil and water.

I think we all know the answer.
 
Absolutely.

The thing about the tigray, is that they are quite stupid, because they've bought into the lies they tell the world about the mythical economic growth.

The tigray don't have the capacity to realize, that they're unintentionally setting up the stage for wars in and against Egypt, Sudan, South Sudan (backed by Uganda,) Djibouti and even Somalia, by damming the Shabelle and Juba rivers, which will unite all the qabil's living in those area (which is just about everyone.)

The most interesting area within tigray's approaching demise, comes from Kenya, which will soon leave the original defense pact with ethiopia, because the tigray have drained lake turkana. The turkana people are not only in the process of arming and creating resistance groups against the kenyatta government due to the river, with the already approaching civil war due to the elections adding to the pressure cooker,) but because those same turkana people sit on the only viable oil resources in Kenya, and they're refusing the government to drill as long as the tigray keep lake turkana drained.

tigray's entire future rest's on whether kenyans and sudanese appreciate habashi electricity more than their own oil and water.

I think we all know the answer.
You're so delusional. Egypt has literally signed a declaration on the dam, which means they officially recognize it. The dam is also fully funded by Ethiopians. The dam is also beginning to fill up this year, meaning if it were to be destroyed it would flood and destroy Khartoum.

The pact with Kenya has never taken effect and will never do so. Don't worry about it. The gigel 3 dam has been complete for over a year. Kenya cannot and will not do anything.

Get off the drugs mate, the rest of your points don't make any sense.
 
You're so delusional. Egypt has literally signed a declaration on the dam, which means they officially recognize it. The dam is also fully funded by Ethiopians. The dam is also beginning to fill up this year, meaning if it were to be destroyed it would flood and destroy Khartoum.

The pact with Kenya has never taken effect and will never do so. Don't worry about it. The gigel 3 dam has been complete for over a year. Kenya cannot and will not do anything.

Get off the drugs mate, the rest of your points don't make any sense.
Tigray men lie, tigray women lie, numbers don't lie.



Financial Cost Benefit Analysis of GERD:

Projected cost of Euro 3.422 billion (3.442 billion Euro x 1. 28 exchange rate= USD 4.38 billion).

Based on estimated 30 % income tax bracket for Ethiopian Elector Power Corporation (EEPCo), it would take more than 8.32 years= USD 4.32 billion/ USD 526 million cash to break even. For the first 8.32 years, the Ministry of Finance of Ethiopia would get only tax revenue on the $526 million from EEPCo selling electricity to it neighboring countries, proceed less payment to bond holder will be going to EEPCo. The return on Investment (ROI) on Net Income for GERD project is 12.02 percent.



The dam will take years to fill up, not one year....

Meanwhile, its vast 74 billion-cubic-meter reservoir will start to fill, a process expected to take anywhere from five to 15 years.
https://spectrum.ieee.org/energy/policy/the-grand-ethiopian-renaissance-dam-gets-set-to-open

Which means tplf will accrue up to 15 years of straight interest rate debt before max capacity. :deadmanny:
There's also not enough transmission infrastructure to even utilize it.

Your unparalleled ignorance is tiresome. tigray.

Go back to school. I don't mind donating a book, since tplf probably took your school money to contribute to the dam.


 
Tigray men lie, tigray women lie, numbers don't lie.



Financial Cost Benefit Analysis of GERD:

Projected cost of Euro 3.422 billion (3.442 billion Euro x 1. 28 exchange rate= USD 4.38 billion).

Based on estimated 30 % income tax bracket for Ethiopian Elector Power Corporation (EEPCo), it would take more than 8.32 years= USD 4.32 billion/ USD 526 million cash to break even. For the first 8.32 years, the Ministry of Finance of Ethiopia would get only tax revenue on the $526 million from EEPCo selling electricity to it neighboring countries, proceed less payment to bond holder will be going to EEPCo. The return on Investment (ROI) on Net Income for GERD project is 12.02 percent.



The dam will take years to fill up, not one year....

Meanwhile, its vast 74 billion-cubic-meter reservoir will start to fill, a process expected to take anywhere from five to 15 years.
https://spectrum.ieee.org/energy/policy/the-grand-ethiopian-renaissance-dam-gets-set-to-open

Which means tplf will accrue up to 15 years of straight interest rate debt before max capacity. :deadmanny:
There's also not enough transmission infrastructure to even utilize it.

Your unparalleled ignorance is tiresome. tigray.

Go back to school. I don't mind donating a book, since tplf probably took your school money to contribute to the dam.


How can Ethiopia pay for a loan for the GERD when it's fully funded by the government and Ethiopians?? How does that even make any sense to you? Ethiopia has already laid the ground work for the largest set of electrical transformers in Africa. GERD is talked about because it's on the Nile, but we have over 20 planned dams on the way, and 2 more on the Nile alone.

The reason why you see the Egyptian president meeting with all the countries of the Nile is because of one reason. they are desperately trying to maintain their large share of the Nile water use. They know it's futile to try to wage war on the 10 up stream countries, which would be heavily condemned by the international community. So they opted out to win through diplomacy and bribes, they have even rejoined the Nile initiative.
 
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