ETHIOPIA: UN says making poor farmers repay loans "immoral", It said many farmers in Sidama Zone in southern Ethiopia were already relying heavily on humanitarian help from charities and could not repay their loans.
The United Nations said on Thursday that forcing farmers facing serious food shortages to pay back money borrowed to improve their land was "immoral". The UN’s Emergency Unit For Ethiopia (EUE) said the government should ease the credit burden on already overstretched farmers facing severe food shortages. It said many farmers in Sidama Zone in southern Ethiopia were already relying heavily on humanitarian help from charities and could not repay their loans. In some parts of the country, farmers who have been unable to meet the repayments on money borrowed for improved seeds and fertilisers have been jailed. Interest on loans taken out by farmers can be as high as 12.5 percent – higher than bank rates – for "agricultural extension packages" of improved seeds and fertiliser. The EUE report said: "It is just immoral and impossible to expect full repayment for the supplied agricultural extension packages from farm households that are already experiencin