International Monetary Fund (IMF) Managing Director Kristalina Georgieva recently visited Ethiopia, highlighting the country’s progress in debt restructuring talks under the Group of 20’s Common Framework. Georgieva emphasized that Ethiopia is in the “final stretch” of negotiations with its creditors, a process she described as a top priority. The IMF expects a memorandum of understanding with official creditors to be finalized by the third review in April, marking a significant milestone in Ethiopia’s efforts to stabilize its economy.
Ethiopia defaulted on a $1 billion eurobond at the end of 2023 and has since been negotiating with both official and private creditors. Official creditors met in December to discuss debt treatment and a potential extension of the repayment freeze until an agreement is reached. Finance Minister Ahmed Shide confirmed that negotiations are in their final stages, with continued support from the IMF and World Bank.
Georgieva praised Ethiopia’s economic reforms, including the liberalization of its exchange rate and the adoption of an interest-rate-based monetary policy framework. These measures helped secure a $3.5 billion IMF financing package in July 2023, with $1.5 billion already disbursed due to Ethiopia’s strong performance in the early stages of the program.
