Eritrea to Pay Ethiopia Millions for War Damage
– TPLF demand for $1bn rejected.
10 June 2018 – In the face of rising foreign exchange shortages and government debt in Ethiopia, Prime Minister Abiy Ahmed or rather “Prime Minister Bolt” for the sprinter-like pace of reforms he has brought in to his country, may prevent the acute economic crisis from the Eri-Ethio border windfall.
Foreign exchange reserves held by the National Bank of Ethiopia, the central bank, are thought to be only sufficient to cover a little more than one month of imports, according to Ethiopian bankers.
Earlier this year the International Monetary Fund raised Ethiopia’s risk of debt distress to “high”. Government debt now stands at 59 percent of the gross domestic product, up from 46.8 percent four years ago after the government borrowed heavily to invest in infrastructure projects and industrial parks.
Sinosure, China’s main state-owned export and credit insurance company, was no longer extending credit insurance to Chinese banks for projects in Ethiopia.
An international tribunal in The Hague has ruled that Eritrea will have to pay Ethiopia millions of dollars in compensation for war damages.
Both were ordered to pay each other damages for the 1998-2000 border war, but the verdict leaves Eritrea with $10m more to pay.
The ruling covers compensation for businesses and goods lost and villages destroyed during the bitter conflict.
Eritrea has already said it accepts the ruling of the tribunal.
The Claims Commission, set up at the end of the war, ruled on awards across a range of issues.
It gave a monetary value to the damage suffered by Ethiopians during an incident when Eritrean jets mistakenly dropped bombs on a school in the town of Mekele.
It also awarded Eritreans living in Ethiopia, whose homes and properties were seized by the government.
Some claims – such as an Ethiopian demand for $1bn of environmental damage – were dismissed by the court.
In total Ethiopia was awarded $174m, while Eritrea got $164m – a net payment to Ethiopia of just over $10m.
The ever increasingly popular Prime Minister Bolt of Ethiopia who has brought unprecedented changes that sweeping across Ethiopia may get his hands on the extra revenue that is needed badly.
However, information in Asmara suggests, the goodwill of Ethiopian new prime minister is about to be disrupted by the Tigray People’s Liberation Front (TPLF) against Dr. Abiy’s Tuesday statement of the full acceptance of the December 12, 2000, Algiers Agreement, a peace agreement between the governments of Eritrea and Ethiopia.
TPLF officials have now resorted to ‘package’ dialogue before withdrawing from Eritrean sovereign territories.
Eritrea may well then hold on to the millions for an unforeseeable period.
TPLF galma wareegamtootaa Maqalee cufatee maree isaa itti fufeera.Murtoo jarri dabarsanu gurra qeensinee eegaa jirra.