ETHIOPIA  Debt treatment -      July 2, 2025

Supporting agreements with the international institutions

IMF programme supported by the arrangements under the Extended Credit Facility (ECF) approved on July 29, 2024, in an amount equivalent to SDR 2.6 billion (about USD 3.4 billion)

Download the IMF report ECF document

Total external debt of the country

$31 billion as of end-June 2024 (DSA perimeter), of which $15.6 billion to multilateral creditors (50% of the total external debt), $11.8 billion to official bilateral creditors (38%), mostly due to Official Creditors Committee (OCC) members, $3.6 billion to external private creditors (12% of the total external debt).

Accorded treatment

For the OCC, a stock treatment is applied, with the total outstanding amount of principal and arrears due as of June 30, 2024 rescheduled through a lowering of interest rates and extending maturities until FY 2038/39.

Repayment profile

Rescheduling of the debt stock until FY 2038/39.

Specific provisions

Prior to the debt treatment, the OCC provided a debt service suspension to Ethiopia, running grom January 1, 2023 until the implementation of the debt treatment.

Comparability of treatment provision

In order to secure comparable treatment of its debt due to all its other external creditors in the scope of the debt treatment, the Ethiopian Government commits to promtly seek from such creditors a treatment on terms at least as favourable to Ethiopia as those on which it reached consensus wit the OCC. The Ethiopian Government commits to, on a quarterly basis, inform the OCC, through its Secretariat and Chairs, on the progress of negotiations with all other external creditors in the scope of the debt treatment from the date of the signing of the MoU. 

Cut-off date

November 9, 2023

Organisation of the session

Key dates:

- Staff-Level Agreement: May 7, 2024

- OCC financing assurances: July 11, 2024

- IMF programme approval: July 29, 2024

- Agreement-in-principle (AIP) on main terms: March 21, 2025

- IMF 1st Review and 2nd Review: November 4, 2024 and January 29, 2025

- Agreement on the MoU: July 2, 2025

- IMF 3rd Review: July 2, 2025

- Reception of all the signatures on the MoU: December 31, 2025

 

Members of the Official Creditors Committee:

- OCC co-chairs: CHINA, FRANCE

- OCC members:

  • CHINA
  • DENMARK
  • FINLAND
  • FRANCE
  • INDIA
  • ISRAEL
  • ITALY
  • JAPAN
  • REPUBLIC OF KOREA
  • SAUDI ARABIA
  • SOUTH AFRICA
  • SWEDEN
  • SWITZERLAND
  • TURKIYE

 

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