PANAPRESS
Panafrican News Agency
Ethiopia: Experts begin work on proposal to create IGAD Regional Bank
Addis Ababa, Ethiopia (PANA) - East African experts convened a meeting Saturday to discuss proposals to create a regional bank owned and operated by the Intergovernmental Authority on Development (IGAD).
The experts' meeting, convened by the Horn Economic and Social Policy Institute, a think-tank based in Addis Ababa, sought the ways and means of creating the Bank and how to finance its operations.
"We are discussing the ownership structure and the modalities of its operations," said Dr. Haile Kebret, Research Director at the Horn Institute.
The Djibouti-based IGAD Secretariat has carried out research on the proposed Development Bank for IGAD (DBI), to enable the organization to tackle its financing needs.
Haile said more feasibility studies were required to determine the financing prospects and the financial risks such a bank could face.
"We are looking at the demand and the supply side of the equation, the prospects of donors financing it and the ability of the potential borrowers and how to account for the loans," Haile told PANA.
Experts were divided on whether the creation of such a new institution should be entrusted to the governments.
There were proposals to ask IGAD Secretariat to continue technical work and the paperwork required to legalise the proposed Bank while efforts are made to involve the Horn of Africa regional leaders.
"There is need to mobilise political support for the Bank while experts work towards treaties," said Haile.
Research Expert Adam El Hiraika, said the proposed IGAD Bank should be dedicated to the promotion of regional security through the financing of projects that promote peace.
Ali Issa Abdi, the Horn Economic and Social Policy Institute's Managing Director, said as much research as possible was required to bring the proposed bank to reality.
"The sponsoring agency (IGAD) has done preliminary work and wants to validate its findings. They are asking for details like the amount of capital subscription per member state. These are issues to be decided by the member states," Dr. Abdi told PANA.
Experts drawn from UN agencies, members of IGAD - Ethiopia, Djibouti, Kenya, Uganda, Sudan, South Sudan and Somalia - were divided on whether the proposal to create the Bank would be acceptable.
The IGAD states are also members of regional organizations which operate regional development banks.
The East African region has the East African Development Bank and the Preferential Trade Agency (PTA) acts as the financing arm of the Common Market for Eastern and Southern Africa (COMESA).
The brainstorming meeting was divided on whether foreign financiers would put funds into the Bank. They proposed that funds should be sought from the rich Gulf States to prop the Bank.
-0- PANA AO/VAO 26July2014
The experts' meeting, convened by the Horn Economic and Social Policy Institute, a think-tank based in Addis Ababa, sought the ways and means of creating the Bank and how to finance its operations.
"We are discussing the ownership structure and the modalities of its operations," said Dr. Haile Kebret, Research Director at the Horn Institute.
The Djibouti-based IGAD Secretariat has carried out research on the proposed Development Bank for IGAD (DBI), to enable the organization to tackle its financing needs.
Haile said more feasibility studies were required to determine the financing prospects and the financial risks such a bank could face.
"We are looking at the demand and the supply side of the equation, the prospects of donors financing it and the ability of the potential borrowers and how to account for the loans," Haile told PANA.
Experts were divided on whether the creation of such a new institution should be entrusted to the governments.
There were proposals to ask IGAD Secretariat to continue technical work and the paperwork required to legalise the proposed Bank while efforts are made to involve the Horn of Africa regional leaders.
"There is need to mobilise political support for the Bank while experts work towards treaties," said Haile.
Research Expert Adam El Hiraika, said the proposed IGAD Bank should be dedicated to the promotion of regional security through the financing of projects that promote peace.
Ali Issa Abdi, the Horn Economic and Social Policy Institute's Managing Director, said as much research as possible was required to bring the proposed bank to reality.
"The sponsoring agency (IGAD) has done preliminary work and wants to validate its findings. They are asking for details like the amount of capital subscription per member state. These are issues to be decided by the member states," Dr. Abdi told PANA.
Experts drawn from UN agencies, members of IGAD - Ethiopia, Djibouti, Kenya, Uganda, Sudan, South Sudan and Somalia - were divided on whether the proposal to create the Bank would be acceptable.
The IGAD states are also members of regional organizations which operate regional development banks.
The East African region has the East African Development Bank and the Preferential Trade Agency (PTA) acts as the financing arm of the Common Market for Eastern and Southern Africa (COMESA).
The brainstorming meeting was divided on whether foreign financiers would put funds into the Bank. They proposed that funds should be sought from the rich Gulf States to prop the Bank.
-0- PANA AO/VAO 26July2014
