An International Monetary Fund (IMF) delegation has arrived in Addis Ababa, Ethiopia, signaling crucial talks ahead of an imminent debt service deadline.
This visit holds significant weight, as Ethiopia seeks to restructure its public debt through the G20’s Common Framework, necessitating an IMF program for eligibility.
Ethiopia confronts a daunting USD 11.5 billion financing gap over the next four years, compounded by the Tigray region’s civil conflict and persistent foreign currency shortages.
RELATED POSTS
The government’s financial woes became glaringly evident with its default on a USD one billion Eurobond interest payment in December, while the total external debt has ballooned to USD 27.8 billion as of September.
While the exact restructuring amount remains undisclosed, the majority of Ethiopia’s external public debts are multilateral, mirroring similar cases such as Ghana and Zambia under the Common Framework.
The IMF delegation’s arrival follows a previous mission in October, underlining the urgency in tackling Ethiopia’s economic crises.
