Ethiopia has reached the final stage of negotiations with creditors to restructure its soaring debt, Finance Minister Ahmed Shide announced Sunday.
The East African nation has struggled under mounting financial burdens, with talks progressing slowly despite the G20’s Common Framework initiative for debt relief.
In 2023, Ethiopia defaulted on its $1 billion Eurobond, intensifying concerns over its ability to manage external financial obligations and sustain economic stability.
“We are in the final stage of negotiations in terms of debt restructuring,” Shide said at a press conference in Addis Ababa, alongside visiting IMF head Kristalina Georgieva.
By the end of June, Ethiopia’s external debt stood at $28.9 billion, with nearly half owed to multilateral institutions like the IMF, World Bank, and African Development Bank.
“It’s on the top of my priority list,” Georgieva said, describing Ethiopia’s debt restructuring process as being in the “final stretch” of completion.
Last July, Ethiopia secured a $3.4 billion financing agreement with the IMF, aiming to stabilize its economy and regain financial credibility.
