03-07-2025
Ethiopia 'formalises debt rework' with official creditors
Ethiopia said on Wednesday it had agreed a memorandum of understanding with its official creditor committee (OCC) that formalises an initial debt restructuring deal reached earlier this year.
The debt rework offers relief of more than $3.5bn (R61.29bn), the finance ministry said in a statement.
The Horn of Africa nation opted to restructure its external debt under the G20's Common Framework in 2021, before it defaulted on its sole Eurobond in December 2023. It hopes the formal agreement with its official creditors will help it seal deals with other creditors, such as its bondholders, the finance ministry said.
Ethiopia has been locked in a standoff with a group of investors in its $1bn (R17.51bn) Eurobond, which matured in 2024.
"Ethiopia continues to engage in good faith with all its other participating external creditors and seeks to conclude restructuring agreements on terms compatible with the country's need for debt relief and the comparability of treatment principle," said state finance minister Eyob Tekalign Tolina.
