Ministry of Finance has welcomed the Statement by a group of creditor nations committing to grant Ethiopia debt relief.
Ethiopia requested debt relief from its bilateral creditor countries in early 2021 under G20 Common Framework for Debt Treatments beyond Debt Service Suspension Initiative (DSSI).
The creditor committee for Ethiopia, which is co-chaired by representatives of the Chinese and French governments, has since met four times.
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During the four meetings, officials say all relevant data about Ethiopia’s debt stock and its strategy for managing its debt over the long term was shared with the committee.
– ‘Appropriate solution‘ –
The committee’s latest meeting held last month discussed pending issues in light of the discussion between the Government of Ethiopia and the International Monetary Fund (IMF) staff.
In a statement issued on Wednesday, the creditor committee for Ethiopia said it welcomed talks in June between the government and IMF staff and looked forward to further discussions about an IMF support program, which is necessary for debt relief.
“The creditor committee for Ethiopia will pursue its work to find an appropriate solution to external debt vulnerabilities of Ethiopia, in a timely, orderly and coordinated manner,” the statement reads.
– Govt Welcomes the statement –
Ethiopia welcomed the committee’s statement and extended its appreciation to all bilateral creditor countries for their work to provide the country “the necessary financing assurance in line with the overall strategy of the Government of Ethiopia to reduce the debt burden from high to moderate.”
The Government of Ethiopia “looks forward to an expeditious conclusion of the debt treatment discussion,” said the Ministry of Finance.
The ministry also appreciated the continued engagement of the IMF in designing a new program to support Ethiopia’s ambitious economic growth.
The IMF and the World Bank are pushing China, and private creditors to accelerate work on debt treatments sought by Ethiopia, Chad, and Zambia under the G20 joint debt restructuring framework.