By Abebech Tamene

ADDIS ABABA 

The Ethiopian government said on Monday that it will sell bonds in the global capital market in an effort to raise funds for the country's mega-projects.

"The sale will help find an additional financial source for the implementation of the country's investment and mega-projects and it will never have a debt burden," Finance Minister Sufian Ahmed was quoted as saying by the Ethiopian news agency.

"The process may take four months,” he said.

The minister said that an international consultant firm has been employed to evaluate the harmonization of the process with Ethiopian law.

"Negotiations are being held with banks, which have global recognition," he said. "After reaching agreement with the banks this week, the country will get foreign loans through selling bonds."

According to Ahmed, the purchase of Ethiopian bonds by investors indicates trust in the country and will open the door for global investors to invest in Ethiopia.

Currently, Ethiopia's total debt, including domestic loans, is no more than 30 percent of the country's gross domestic product, he said.

Last March, Ethiopia had secured a credit rating from Standard & Poor's and Fitch assigned a rating of "B" to the country's sovereign treasury bonds, while Moody's gave a "B1" (B+).

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