IMF Backs Ethiopia’s Plan to Rework Debt Under G-20 Framework
- IMF reaches staff agreement with Ethiopia on credit facilities
- Bondholders wary of participating in debt relief arrangement
A medical worker collects a swab sample from a person at a Covid-19 testing center in Addis Ababa.
Photographer: Amanuel Sileshi/AFP/Getty ImagesThis article is for subscribers only.
The International Monetary Fund backed Ethiopia’s plan to rework its debt under the Group of 20 common framework as it reached a staff-level agreement with the government on credit facilities.
“To strengthen debt sustainability, the authorities aim to lower the risk of debt distress rating to moderate by re-profiling debt service obligations,” the lender said in an emailed statement on Tuesday. “In this context, the fund welcomes Ethiopia’s request for debt treatment under the G20 Common Framework.”