The Ethiopian government has set an October 2026 deadline to finalize debt restructuring agreements with bilateral and commercial creditors. This step follows prior deals with the IMF and official creditors under the G20 Common Framework.
The Ethiopian government aims to wrap up all remaining debt restructuring by October 2026. This marks the final phase of efforts to restore macroeconomic stability.
Ethiopia reached an agreement with the IMF in July 2024. It then secured an agreement in principle with the Official Creditor Committee in March 2025 and signed a formal memorandum of understanding in July 2025.
France became the first country to sign a bilateral agreement in early 2026. The deal also provides €81.5 million to support the second phase of the Homegrown Economic Reform program.
Negotiations with commercial creditors, who hold about 10 percent of external debt, are now the main focus. This includes holders of a $1 billion Eurobond that matured in December 2024.
The government has reduced the debt-to-GDP ratio from 56 percent in 2018 to 37 percent by the end of 2025 through fiscal discipline.
