Ethiopia’s government has announced plans to finalize a Memorandum of Understanding (MoU) with the Official Creditor Committee (OCC) by April under the G20 Common Framework (CF) for debt treatment. This update comes after years of negotiations aimed at re-profiling the country’s debt.
The International Monetary Fund (IMF), in its latest review of Ethiopia’s 48-month Extended Credit Facility(ECF), emphasized the importance of debt treatment for restoring the country’s fiscal sustainability. The IMF approved USD 3.4 billion under the ECF last July after Ethiopia received OCC assurances on debt re-profiling.
Ethiopia aims to address USD 3.5 billion in debt treatment under the CF, with USD 1.4 billion in temporary relief already secured through a debt service standstill agreement. However, China has delayed new loans, leaving USD 9.9 billion in undisbursed credit.
Finance Minister Ahmed Shide recently led a delegation to China, Ethiopia’s largest bilateral creditor, to engage with Chinese commercial lenders and officials from institutions such as the China Development Bank (CDB) and Exim Bank of China. The visit sought to strengthen economic cooperation and advance debt restructuring talks.
Negotiations continue as Ethiopia seeks similar agreements for Eurobonds and other foreign commercial debts. An approved MoU is expected ahead of the IMF’s third assessment.
Source: Capital Ethiopia
