The Ethiopian government has deferred its eurobond payment to the next fiscal year as part of efforts to improve its debt profile under the G20 Common Framework.
Finance Minister Ahmed Shide announced the rescheduling of the partial payment on the $1 billion eurobond, originally expected in the 2025/26 fiscal year. The move aligns with the principle of comparability of treatment to ensure private creditors receive terms no better than those of official bilateral lenders.
Ethiopia has secured support from the IMF and World Bank as one pillar of its strategy. It also reached a memorandum of understanding with the Official Creditor Committee representing 15 nations.
Negotiations with China advanced with the signing of minutes of negotiation, paving the way for payments to resume in the final months of the current fiscal year. Talks with private eurobond holders continue, with any deal requiring approval from the official creditor group.
The government allocated 463.4 billion birr for debt servicing this year and paid 226.8 billion birr in the first nine months. Officials aim to finalize a comprehensive restructuring agreement by the end of the fiscal year.
