Ethiopia’s official international creditors have decided to extend the deadline for the nation to finalize talks with the IMF until the end of June.
The Paris Club creditors, a group of official creditors, granted Ethiopia an additional three months beyond the original deadline after negotiations between the Ethiopian government and the IMF in Addis Ababa concluded without reaching a deal in early April.
Ethiopia’s financial struggles have been apparent since December 2023 when it missed a 33 million USD bond coupon payment, marking it as Africa’s most recent debt defaulter.
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Subsequently, China, Ethiopia’s largest creditor, allowed the country to suspend debt repayments on bonds due in the 2023-2024 fiscal year.
In November 2023, the Paris Club of international creditors announced a suspension of debt repayments until the end of 2024, contingent upon Ethiopia reaching a preliminary bailout agreement with the IMF by the end of March.
The Paris Club creditors had warned that the agreement to suspend Ethiopia’s debt payments through 2025 could be nullified if the country failed to secure an IMF loan by March 31st.
