Ethiopia PM says China will restructure railway loan

China has agreed to restructure a loan that financed the Ethiopia-Djibouti railway which handles cargo from The Port of Doraleh. (Reuters)
Updated 06 September 2018
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Ethiopia PM says China will restructure railway loan

  • Ethiopia has been a top destination for Chinese loans in Africa, with state policy banks extending it more than $12.1 billion since 2000
  • The Addis Ababa link with Djibouti handles roughly 95 percent of all inbound trade for Ethiopia

ADDIS ABABA: China has agreed to restructure some of Ethiopia’s debt, including a loan for a $4 billion railway linking its capital Addis Ababa with neighboring Djibouti, Ethiopia’s Prime Minister Abiy Ahmed said on Thursday.
Abiy described the rescheduling as limited, but added that repayment of the railway debt has been extended by 20 years.
Landlocked Ethiopia and the Red Sea state inaugurated the railway in January, with 70 percent of the total cost covered through a loan from the Export-Import Bank of China (EXIM).




Stations along the Ethiopia-Djibouti railway. (Wikimedia Commons)

Ethiopia has been a top destination for Chinese loans in Africa, with state policy banks extending it more than $12.1 billion since 2000, according to the China Africa Research Initiative at Johns Hopkins University of the United States.
Speaking upon his return from a China-Africa forum for cooperation in Beijing, Abiy told reporters he held successful talks with Chinese government officials over his country’s debt.
“During our stay, we had the opportunity to enact limited restructuring of some of our loans,” he said in Addis Ababa. “In particular, the loan for the Addis Ababa-Djibouti railway which was meant to be paid over 10 years has now been extended to 30 years.”
The deal was made amid rising concerns over debt distress, with the Ethiopian government’s debt reaching 59 percent of the country’s annual gross domestic product, according to official figures.
The country’s ruling EPRDF coalition, in power since ousting a military junta in 1991, aims for Ethiopia to reach middle income status by 2025. It is pursuing ambitious manufacturing-led industrialization that has involved building roads, railways and industrial parks — as well as mounting debt.
Though the Addis Ababa link with Djibouti, which handles roughly 95 percent of all inbound trade for Ethiopia, is complete, the line’s extension to its north has faced delays owing to a lack of funding.
In addition to Djibouti, Ethiopia is also in discussions with neighboring Eritrea, Sudan and Somalia to expand its options for sea access. It has negotiated deals with Djibouti and Sudan to hold equity in their ports.


New York City Mayor de Blasio ends 2020 presidential bid

Updated 20 September 2019

New York City Mayor de Blasio ends 2020 presidential bid

  • The mayor, who is barred from seeking a third four-year term in New York in 2021, struggled to build a national profile and stand out in a crowded field
  • De Blasio had failed to qualify for a Sept. 12 debate that featured the 10 leading candidates for the party’s nomination

NEW YORK: New York City Mayor Bill de Blasio on Friday said during an MSNBC television appearance that he was dropping out of the 2020 presidential campaign.
De Blasio, 58, launched his candidacy in May with the central campaign message “Working People First,” becoming the 24th Democrat to attempt to take on President Donald Trump in next year’s election.
The mayor, who is barred from seeking a third four-year term in New York in 2021, struggled to build a national profile and stand out in a crowded field that includes former Vice President Joe Biden and a long list of experienced politicians.
News of the mayor ending his presidential bid was greeted with sarcasm by Trump.
“Oh no, really big political news, perhaps the biggest story in years! Part time Mayor of New York City, @BilldeBlasio, who was polling at a solid ZERO but had tremendous room for growth, has shocking dropped out of the Presidential race,” Trump tweeted early on Friday. “NYC is devastated, he’s coming home!“
De Blasio had registered little support in polls and was eclipsed by progressive US senators Bernie Sanders and Elizabeth Warren.
De Blasio said on MSNBC’s “Morning Joe” that a “central reason” for his decision was the party’s rules for qualifying for televised debates. He had failed to qualify for a Sept. 12 debate that featured the 10 leading candidates for the party’s nomination.
“The bar is so high so early that for a lot of us — clearly, some of my fellow chief executives, governors — couldn’t make that cut,” de Blasio said. “It’s clear to me it’s a high bar, and that it’s one I’m not going to be able to meet.”
De Blasio had emphasized during the campaign a list of progressive wins under his leadership, including universal pre-kindergarten, the end of the policing practice known as stop-and-frisk and paid sick leave, all in a city that has a bigger population, more than 8 million, than most US states.
Most New Yorkers had appeared unenthused about de Blasio’s presidential aspirations. A Quinnipiac University poll in April found more than three-quarters of New Yorkers did not feel he should make a White House bid.