Ethiopia Achieves Debt Relief Agreement with Official Creditor Committee

Ethiopia has reached an Agreement in Principle with its Official Creditor Committee for a debt treatment plan covering USD 8.4 billion. The arrangement includes negotiating a USD 3.5 billion reduction in debt services, providing USD 2.5 billion in relief from 2023 to 2028. It aims to enhance Ethiopia’s repayment profile and support public investments.

Ethiopia has successfully reached an Agreement in Principle (AIP) with its Official Creditor Committee regarding a debt treatment plan, which addresses approximately USD 8.4 billion in public debt. This agreement represents a significant milestone under the G20 Common Framework regulations. The Ministry of Finance has stated that alongside a previously arranged financing package with the International Monetary Fund (IMF), Ethiopia aims to negotiate debt relief with its external creditors.

This Agreement in Principle marks a pivotal development in Ethiopia’s financial strategy, enabling significant debt relief and allowing for increased public investment. The planned reduction of USD 3.5 billion in debt service over the program period is critical for fostering economic stability and growth in alignment with the nation’s Perspective Development Plan.

Original Source: www.2merkato.com