Risk premium on lending (lending rate minus treasury bill rate, %) in Ethiopia
Ethiopia: Risk premium on lending (lending rate minus treasury bill rate, %) 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 18th 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 (lending rate minus treasury bill rate, %) 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% |
Ethiopia compared with similar countries
- Ethiopia's 7.3% is below the median for low income countries, which is 8.4%, 87% of the median. (10 countries reporting)
- Ethiopia's 7.3% is above the median for Sub-Saharan Africa, which is 5.7%, 1.3× the median. (22 countries reporting)
Biggest year-on-year movements
Years where Risk premium on lending (lending rate minus treasury bill rate, %) in Ethiopia changed far more than this series normally does. A large move can be a real event or a change in how the figure was measured — the source note below says who published it.
| Year | Change | From | To |
|---|---|---|---|
| 1996 | +117.2% | 3.1% | 6.7% |
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
More financial sector data for Ethiopia
- Reserve position in the IMF, US dollar, annual growth rate 5.01 % change on previous year (2025)
- Reserve position in the IMF, US dollar, per unit of GDP 0.0001 units per US$ of GDP (2025)
- Reserve position in the IMF, US dollar, per capita 0.0759 units per person (2025)
- Reserve position in the IMF, SDR, annual growth rate 0 % change on previous year (2025)
- Reserve position in the IMF, SDR, per unit of GDP 0.0001 units per US$ of GDP (2025)
- Reserve position in the IMF, SDR, per capita 0.0554 units per person (2025)
- Reserve tranche position, US dollar, annual growth rate 5.01 % change on previous year (2025)
- Reserve tranche position, US dollar, per unit of GDP 0.0001 units per US$ of GDP (2025)
- Reserve tranche position, US dollar, per capita 0.0759 units per person (2025)
- Reserve tranche position, SDR, annual growth rate 0 % change on previous year (2025)
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 18th 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.
Download this data
CSV · JSON — 24 observations, free to reuse under CC BY 4.0 (World Bank Open Data).
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.