Ethiopia Aims Debt Restructuring 

Ethiopia is in the final stages of negotiations with its creditors to restructure its sovereign debt, Finance Minister Ahmed Shide announced on Sunday.

Speaking at a joint press conference in Addis Ababa with International Monetary Fund, IMF, Managing Director Kristalina Georgieva, Shide expressed confidence that the process would be completed soon.

“We are in the final stage of negotiations in terms of debt restructuring,” he stated.

Ethiopia has been working to restructure its debt under the G20’s Common Framework initiative, though progress has been slow.

The country defaulted on its $1 billion Eurobond in 2023 and continues to grapple with a significant debt burden.

As of June 2023, Ethiopia’s external debt stood at $28.9 billion, with approximately half owed to multilateral lenders such as the IMF, World Bank, and African Development Bank.

Georgieva reiterated the importance of Ethiopia’s debt restructuring efforts, calling it a top priority. “It’s on the top of my priority list,” she said, describing the process as being in the “final stretch.”

In July 2023, Ethiopia secured a $3.4 billion financing agreement with the IMF, aimed at supporting economic stability and reforms.

The completion of the debt restructuring negotiations is expected to provide further relief for the country’s financial challenges.

Reuters/Patience Ameh