Ethiopia is nearing the completion of negotiations to restructure its sovereign debt, with Finance Minister Ahmed Shide announcing on Sunday that the process is in its final stages.
At a joint press conference in Addis Ababa with International Monetary Fund (IMF) Managing Director Kristalina Georgieva, Shide expressed optimism that the debt restructuring would soon be finalised.
“We are in the final stage of negotiations in terms of debt restructuring,” Shide said.
Ethiopia has been working under the G20’s Common Framework initiative to address its debt, which has been a slow process.
The country defaulted on its $1 billion Eurobond in 2023 and continues to face significant debt challenges.
By June 2023, Ethiopia’s external debt had reached $28.9 billion, with nearly half of that owed to multilateral lenders, including the IMF, World Bank, and African Development Bank.
Georgieva reiterated the importance of the debt restructuring efforts, stressing that it remains a top priority.
In July 2023, Ethiopia secured a $3.4 billion financing agreement with the IMF to support its economic reforms and stability.
The completion of the debt restructuring talks is expected to offer further relief for the country’s financial difficulties.
