Risk premium on lending in Ethiopia
Ethiopia: Risk premium on lending was 7.3% in 2008. ▲ Rising
Risk premium on lending in Ethiopia, 1985–2008
Source: International Financial Statistics database, International Monetary Fund (IMF). Measured in lending rate minus treasury bill rate, %.
Analysis
In 2008, risk premium on lending in Ethiopia stood at 7.3%.
That represents a change of up 11.4% on the previous year and up 4.3% over ten years.
Over the whole period, risk premium on lending in Ethiopia peaked at 8.2% in 2000 and was at its lowest, 2.0%, in 1993.
Ethiopia ranks 20th of 86 countries on this measure, in the top quarter.
The long-run direction has been consistently rising across the 24 years of available data.
Risk premium on lending in Ethiopia, year by year
| Year | lending rate minus treasury bill rate, % | Change |
|---|---|---|
| 1985 | 5.5% | — |
| 1986 | 4.2% | -22.7% |
| 1987 | 3.0% | -29.4% |
| 1988 | 3.0% | +0.0% |
| 1989 | 3.0% | +0.0% |
| 1990 | 3.0% | +0.0% |
| 1991 | 3.0% | +0.0% |
| 1992 | 2.8% | -8.3% |
| 1993 | 2.0% | -27.3% |
| 1994 | 2.3% | +16.7% |
| 1995 | 3.1% | +32.1% |
| 1996 | 6.7% | +117.2% |
| 1997 | 6.5% | -2.5% |
| 1998 | 7.0% | +7.4% |
| 1999 | 6.9% | -1.3% |
| 2000 | 8.2% | +17.7% |
| 2001 | 7.8% | -4.2% |
| 2002 | 7.4% | -5.8% |
| 2003 | 5.6% | -23.4% |
| 2004 | 6.4% | +14.2% |
| 2005 | 6.8% | +4.9% |
| 2006 | 6.9% | +2.4% |
| 2007 | 6.6% | -5.0% |
| 2008 | 7.3% | +11.4% |
Averages by decade
| Decade | Average | Lowest | Highest | Years |
|---|---|---|---|---|
| 1980s | 3.8% | 3.0% | 5.5% | 5 |
| 1990s | 4.3% | 2.0% | 7.0% | 10 |
| 2000s | 7.0% | 5.6% | 8.2% | 9 |
Countries ranked near Ethiopia
- 17 Bolivia, Plurinational State of 7.6% compare
- 18 Barbados 7.5% compare
- 19 Seychelles 7.4% compare
- 21 Guyana 7.1% compare
- 22 Bulgaria 7.1%
- 23 Antigua and Barbuda 7.0% compare
More financial sector data for Ethiopia
- Net domestic credit (current LCU), per capita 1,078 current LCU per person (2008)
- Net domestic credit (current LCU), per unit of GDP 3.41 current LCU per US$ of GDP (2008)
- Net domestic credit (current LCU), annual growth rate 27.19 % change on previous year (2008)
- Gold reserves at 35 SDRs per ounce 0 SDR (2024)
- Gold reserves at market value 0 SDR (2024)
- Reserves excluding gold, foreign exchange 2.89 billion SDR (2024)
- Reserves excluding gold 2.90 billion SDR (2024)
- Total reserves (gold at market value) 2.90 billion SDR (2024)
- Total reserves (gold at national valuation) 2.90 billion SDR (2024)
- Total reserves (gold at national valuation) (SDR), per capita 21.97 SDR per person (2024)
Frequently asked questions
- What is risk premium on lending in Ethiopia?
- Risk premium on lending in Ethiopia was 7.3% in 2008, according to International Financial Statistics database, International Monetary Fund (IMF).
- What is the highest risk premium on lending recorded in Ethiopia?
- The highest recorded value was 8.2% in 2000.
- What is the lowest risk premium on lending recorded in Ethiopia?
- The lowest recorded value was 2.0% in 1993.
- How does Ethiopia rank for risk premium on lending?
- Ethiopia ranks 20th out of 86 countries with data for 2008.
- Is risk premium on lending rising or falling in Ethiopia?
- Over the last ten years it is up 4.3%. The long-run trend across the full record is rising.
- Where does this Ethiopia data come from?
- The figures come from International Financial Statistics database, International Monetary Fund (IMF), published as part of Risk premium on lending (lending rate minus treasury bill rate, %). Statizoid updates them automatically from the source API.
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About this data
Risk premium on lending is the interest rate charged by banks on loans to private sector customers minus the "risk free" treasury bill interest rate at which short-term government securities are issued or traded in the market. In some countries this spread may be negative, indicating that the market considers its best corporate clients to be lower risk than the government. The terms and conditions attached to lending rates differ by country, however, limiting their comparability.