Debt Crisis in Focus as Central Bank Governor Visits China

Sep 27 , 2025

Eyob Tekalegn (PhD), newly appointed governor of the National Bank of Ethiopia (NBE), made his first official overseas trip to China to discuss debt restructuring. He met with senior officials from China’s Ministry of Finance, the People’s Bank of China, and the Export-Import Bank of China, and is expected to hold talks with leading financial and commercial institutions. State media reported that the visit builds on the recent debt restructuring agreement with the Official Creditors Committee, co-chaired by China and France. Eyob’s mission seeks to accelerate Ethiopia’s restructuring efforts, provide updates on the Home-Grown Economic Reform Agenda, explore future investment projects, and reaffirm commitments to deepening ties with Chinese partners. Ethiopia faces a mounting debt crisis after years of state-led borrowing. The World Bank and IMF recently declared its public debt unsustainable. In 2024, the country defaulted on a Eurobond interest payment, undermining investor confidence, while foreign reserves have fallen to critically low levels, covering less than three months of imports. Debt restructuring under the G20 Common Framework has stalled, forcing the government to rely on costly domestic borrowing as interest rates surge.