
My Opinion | Apr 22,2023
Prime Minister Abiy Ahmed (PhD) had a darting tour of Europe last week, where he visited three countries in two days. In Paris, he met his counterpart, Emmanuel Macron, whose country co-chairs with China a creditors' committee negotiating Ethiopia's external debt. Two of his senior officials, Mamo Mihretu, governor of the central bank, and Eyob Tekalign (PhD), state minister for Finance, were in Paris meeting French officials to shore up support to move forward with debt restructuring.
Ethiopia is one of three African countries - Chad and Zambia included - urging its creditors for debt restructuring under the G20 framework agreement, a.k.a Debt Service Suspension Initiative (DSSI). It was launched in response to the COVID-19 pandemic, providing debt relief to the world's poorest and most vulnerable countries. Ethiopia's annual debt service of over two billion dollars was suspended before December 2021. Although extended for another six months, the initiative expired in June 2022.
Ethiopia owes its creditors 26.8 billion dollars up until September last year, which dropped by over one billion dollars from June of the same year, owing it to an appreciated value of the Dollar. It is a trend that continues to help the country save from currency fluctuations of the Dollar against other currencies. Since September, external debt stock has declined by 2.6 billion dollars, about nine percent, compared to June 2021. Official creditors (bilateral and multilateral) claim 81pc of the external debt, while private creditors have the balance, with Euro bondholders taking 3.72pc of the share.
However, private creditors were seen as unenthusiastic about the complex and ongoing debt restructuring process, which Ethiopian authorities see as critical for economic stability and growth. They have a lot of miles to travel before they see meaningful responses.
PUBLISHED ON
Feb 11,2023 [ VOL
23 , NO
1189]
My Opinion | Apr 22,2023
Radar | Sep 22,2024
Commentaries | Oct 14,2023
Radar | May 27,2023
Fortune News | Dec 25,2022
Radar | Jun 07,2025
My Opinion | Apr 28,2024
Fortune News | Oct 21,2023
In-Picture | Mar 02,2024
Viewpoints | May 31,2025
Dec 22 , 2024 . By TIZITA SHEWAFERAW
Charged with transforming colossal state-owned enterprises into modern and competitiv...
Aug 18 , 2024 . By AKSAH ITALO
Although predictable Yonas Zerihun's job in the ride-hailing service is not immune to...
Jul 28 , 2024 . By TIZITA SHEWAFERAW
Unhabitual, perhaps too many, Samuel Gebreyohannes, 38, used to occasionally enjoy a couple of beers at breakfast. However, he recently swit...
Jul 13 , 2024 . By AKSAH ITALO
Investors who rely on tractors, trucks, and field vehicles for commuting, transporting commodities, and f...
Sep 13 , 2025
At its launch in Nairobi two years ago, the Africa Climate Summit was billed as the f...
Sep 6 , 2025
The dawn of a new year is more than a simple turning of the calendar. It is a moment...
Aug 30 , 2025
For Germans, Otto von Bismarck is first remembered as the architect of a unified nati...
Aug 23 , 2025
Banks have a new obsession. After decades chasing deposits and, more recently, digita...