Ethiopia Nears Resolution in Major Debt Restructuring Talks

Ethiopia is close to finalizing negotiations with creditors to restructure its sovereign debt, as confirmed by Finance Minister Ahmed Shide. The country defaulted on its Eurobond in 2023 and holds significant external debt. An agreement with the IMF for $3.4 billion has been reached to aid the financial recovery.

Ethiopia is nearing the conclusion of critical negotiations with its creditors to restructure its mounting sovereign debt, according to Finance Minister Ahmed Shide. Speaking during a press conference alongside IMF head Kristalina Georgieva, he expressed optimism about concluding talks soon, despite the historically slow pace of discussions under the G20 initiative.

The financial urgency was highlighted when Ethiopia defaulted on its $1 billion Eurobond in 2023, further exacerbating its financial woes. By June, the external debt had reached $28.9 billion, with a significant portion owed to multilateral entities such as the IMF, World Bank, and African Development Bank.

In a bid to stabilize its economy, Ethiopia secured a $3.4 billion financing agreement with the IMF last July. Georgieva underscored the importance of the debt restructuring, marking it as a top priority and hopeful about nearing a resolution in the 'final stretch' of these crucial negotiations.

(With inputs from agencies.)