ETHIOPIA DEFAULTS on $1bn Eurobond

wrongturn said:
Comb me ,what are the effects of default to a country?
Last time I checked, they've refused to address the elephant in the room.
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You can only look at what others have gone thru after default. First, Govts do take people's savings in banks to pay loans.
HyperInflation. Ghana's inflation has reached more than 40%.
Currencies lose value by even 50%.
Also, the country would have to forgo most of those free services you enjoy. I am certain that free secondary education would have to go.
Worse is your credit ratings. Eurobond 2014 was issued at about 6%. On fear of default, the interests rates this yr were ranging between 14-19%, making it very difficult to secure such kind of financing in future.
 
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Okiya said:
This interview with World Bank official was when COVID was just 100 days in Kenya.

- Are you aware that during that year the economy grew slowest since 2009?
- Do you remember PAYE, corporation tax and VAT were reduced?

Surprised you don't think COVID had an impact to the deficit.
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It was also during that time that mega corruption was witnessed at unprecedented levels, money meant for health was stolen under uhuru's supervision, people were arrested and killed by order of the president just for trying to make ends meet, people were evicted from their homes while they drank tea worth 3 million bobs
 
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The words of an expert. I have seen it in this forum. Why would you wish that they fail in this issue yet it's you who will suffer?
 
The.Black.Templar said:
It was also during that time that mega corruption was witnessed at unprecedented levels, money meant for health was stolen under uhuru's supervision, people were arrested and killed by order of the president just for trying to make ends meet, people were evicted from their homes while they drank tea worth 3 million bobs
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Term 2 had scandals but Mega corruption happened during term 1. The list of scandals is out in the open.
 
wrongturn said:
But why is everyone ignoring the biggest 🐘 which is government wastage?
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I have said it severally. They spend billions to campaign. How do you expect them to get their money back if not thru looting?
But in absolute terms, what's wasted is small % compared to the debt.
 
Okiya said:
Term 2 had scandals but Mega corruption happened during term 1. The list of scandals is out in the open.
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It is on record uhuru said that 2 billion was stollen on a daily basis under his supervision, do the math and tell me how this was less than term one
 
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