Ethiopian finance minister highlights budget financing challenges

Finance Minister Ahmed Shide reported to parliament that the 1.93 trillion birr federal budget is under pressure from delayed external aid. He addressed lawmakers on May 4, 2026, noting that domestic borrowing has risen faster than planned. The session took place without private media present.

Finance Minister Ahmed Shide delivered a nine-month budget report to parliament on May 4, 2026. He described the financing assumptions as stretching, pointing to external aid inflows that have not arrived on schedule.

To fill the gap, the government has increased borrowing from the domestic market beyond initial plans. The minister presented details on the 1.93 trillion birr federal budget during the closed session.

The report comes as Ethiopia enters the final quarter of the fiscal year. Officials continue to monitor revenue and spending trends amid these financing shifts.

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Photorealistic scene of Addis Ababa council meeting with mayor presenting budget approval and unanimous vote.
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Addis Ababa council approves appointments and 9.94 billion birr budget

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The Addis Ababa City Council on 30 Miyazia 2018 approved appointments presented by Mayor Adanech Abiebe and an additional budget of 9.94 billion birr in a unanimous vote during its regular session.

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.

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The federal government submitted its largest budget proposal yet to Parliament on June 11 2026. The plan allocates 107 dollars per person on average.

Ethiopia's Ministry of Finance announced on May 27, 2026, that talks with private bondholders over restructuring a $1 billion eurobond have ended without agreement after the Ad Hoc Committee rejected a revised proposal.

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The National Treasury is considering a KSh145.6 billion Eurobond issuance to help finance Kenya's 2026/27 budget.

Negotiations over Ethiopia’s one-billion-dollar Eurobond have broken down. Private creditors are preparing a formal lawsuit in a UK court after a default that began in late 2023.

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Prime Minister Mostafa Madbouly announced the new state budget targeting a reduction in the debt-to-GDP ratio to around 78% by June 2027, as the economy posted 5% growth in the third quarter.

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