Eyob explained that the economy inherited by the transitional government faced major challenges. The recent debt agreement, he said, creates space for essential services and projects to continue.
Economist Michael Addisu said economic growth depends on both internal revenue and borrowing. He noted that loans must be manageable and used after proper assessment. He also recalled that past borrowing involved commercial loans, which placed strain on the economy.
According to Michael, the new approach reduces the burden on banks and allows them to support other areas of development.
Financial adviser Mered Fikreyohannes said the revised repayment terms will help the government manage its budget.
He added that avoiding commercial loans and extending repayment periods will benefit the public and improve financial stability.