Ethiopia is in the final phase of negotiations with its creditors as part of an ongoing effort to restructure its sovereign debt, Finance Minister Ahmed Shide announced on Sunday. The country has been engaged in debt restructuring under a G20 initiative, though progress has been slow.
Ethiopia, which defaulted on its $1 billion Eurobond in 2023, has been struggling to manage its mounting debt. As of June 2024, the nation’s external debt stood at $28.9 billion, with about half owed to multilateral lenders such as the IMF, World Bank, and African Development Bank.
Speaking alongside IMF Managing Director Kristalina Georgieva in Addis Ababa, Ahmed Shide expressed confidence that the process would soon be concluded. Georgieva echoed this sentiment, calling Ethiopia’s debt restructuring a top priority and stating that discussions were in the “final stretch.”
Last July, Ethiopia secured a $3.4 billion financing agreement with the IMF, aimed at stabilizing its economy amid financial challenges.