East Africa: IMF Says Ethiopia Near Debt Restructuring Deal With Creditors

9 February 2025
Daba Finance (Abidjan)
  • Ethiopia is close to finalizing debt restructuring talks under the G20's Common Framework
  • The country defaulted on its $1 billion Eurobond in 2023 and has been negotiating with creditors
  • The IMF approved a $3.4 billion financing program for Ethiopia in July 2024, supporting economic reforms

Ethiopia is close to finalizing debt restructuring talks under the G20's Common Framework, according to IMF Managing Director Kristalina Georgieva.

The country defaulted on its $1 billion Eurobond in 2023 and has been negotiating with creditors to rearrange its external debt. The IMF approved a $3.4 billion financing program for Ethiopia in July 2024, supporting economic reforms.

Finance Minister Ahmed Shide confirmed that negotiations are in the final stages and expected to conclude soon. Ethiopia's external debt stood at $28.9 billion as of June 2024, with about half owed to multilateral lenders like the IMF, World Bank, and African Development Bank.

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Key Takeaways

Ethiopia's debt restructuring talks have been slow but are now nearing completion. The agreement could provide financial relief and restore investor confidence. Multilateral lenders hold a significant share of Ethiopia's debt, making their cooperation critical to any restructuring deal. Ethiopia's economic challenges include high debt levels, default history, and the need for sustainable reforms. The IMF's involvement signals continued international support.

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