Ethiopia’s Growing Debt Appetite and Eurobond The Ethiopian government has significantly increased its borrowing in recent years. Debt-to- GDP ratio has reached an all time high of 35 percent and continues to grow. Lately, the country has also been shifting slowly from concessional loans to market based loans. The Ethiopian Ministry of Finance & Economic Development (MOFED) data shows that, since the beginning of the 2008 world financial crisis through 2013, Ethiopia’s external debt has grown by 156 percent from USD 4.35 billion to USD 11.17 billion. The total public outstanding debt was at USD 16.11 billion, excluding domestic lending to State Owned Enterprises. During the same period, IMF was estimating Ethiopia’s GDP at Birr 877.5 Billion (USD 46 billion). At the moment, Ethiopia has a government guaranteed soft loan program with a rate below 2 percent, a grace period of up to 10 years, and longer duration loans with multilateral development banks, The World Bank loans m