Ethiopia is on the verge of finalizing negotiations to restructure its sovereign debt, according to Finance Minister Ahmed Shide.
Speaking at a joint press conference in Addis Ababa alongside International Monetary Fund (IMF) Managing Director Kristalina Georgieva, Shide expressed confidence that the discussions were in their final phase.
“We are in the final stage of negotiations in terms of debt restructuring,” Shide announced.
Ethiopia has been working under the G20’s Common Framework initiative to address its mounting debt burden, though the process has been slow. The country defaulted on its $1 billion Eurobond in 2023 and continues to grapple with significant financial challenges.
As of June 2023, Ethiopia’s external debt had reached $28.9 billion, with nearly half owed to multilateral lenders such as the IMF, World Bank, and African Development Bank. Georgieva reaffirmed the importance of the restructuring, stating that it remains a top priority for the IMF.
In July 2023, Ethiopia secured a $3.4 billion financing agreement with the IMF to support its economic reforms and enhance financial stability. The completion of debt restructuring talks is expected to provide crucial relief for the country’s struggling economy.
