Ethiopia Nears Completion of $28.9 Billion Debt Restructuring

Ethiopia is nearing the conclusion of negotiations to restructure its sovereign debt, with Finance Minister Ahmed Shide expressing optimism about finalizing the talks soon during a joint press conference with IMF Managing Director Kristalina Georgieva. The country has been working under the G20’s Common Framework initiative and faces significant financial challenges, having defaulted on a $1 billion Eurobond in 2023 and carrying an external debt of $28.9 billion as of June 2023. Georgieva emphasized the urgency of the restructuring efforts, calling it a top priority and indicating that they are in the 'final stretch' of negotiations. Additionally, Ethiopia secured a $3.4 billion financing agreement with the IMF in July 2023 to support its economic stability. The completion of these negotiations is expected to provide further relief for Ethiopia's financial difficulties. Both officials expressed hope that a resolution would be reached imminently.