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Yearbook 1998

Ethiopia. War broke out in May with neighboring Eritrea, after Ethiopia accused Eritrea of ​​occupying an area around the town of Badme on what was considered Ethiopian territory (for description of the conflict, see Eritrea). Behind the conflict lay a time of irritation of economic nature. After independence in 1993, Eritrea continued to use the Ethiopian currency birr until 1997 when the country introduced its own currency nakfa. According to Countryaah, Eritrea claimed that the currencies were equal, while in Ethiopia the nakfan was considered to be greatly overvalued and demanded that trade between the countries should be in hard currency. Eritrea responded by doubling the fees for handling Ethiopian goods in its ports and expelling Ethiopian customs and shipping personnel. Ethiopia then redirected all foreign trade from Eritrea to Djibouti and, after the outbreak of the fighting, closed most of the telephone lines to Eritrea, which severely limited the neighboring country's contacts with the outside world.

1998 Ethiopia

The war became a heavy burden for the already strained economies of both countries. Ethiopia was granted a loan of DKK 42 million from the International Monetary Fund (IMF) in October. dollars, then the central bank eased their currency regulations.

The trial for the past three years against former dictator Mengistu Haile Mariam and his associates continued. A request from the defense for an end to the negotiations after more than 500 testimonies was rejected in July. However, in September, a larger number of senior officers were released from the old regime, of all judges, to reinforce the troops along the Eritrean border.

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