Ethiopia has reached an Agreement in Principle (AIP) with its Official Creditor Committee (OCC) on the key financial parameters of a debt treatment plan under the G20 Common Framework, covering approximately USD 8.4 billion in outstanding public debt.

In a statement issued today, the Ministry of Finance announced that, as part of a financing package already agreed with the International Monetary Fund (IMF), Ethiopia has committed to negotiating debt relief with its external creditors to achieve a USD 3.5 billion reduction in debt service during the program period. The AIP with the OCC is a step toward meeting this goal, providing approximately USD 2.5 billion in debt service relief between 2023 and 2028.

The agreement aims to smooth Ethiopia’s external repayment profile, significantly lower debt costs, and allocate more resources to public investments aligned with Ethiopia’s Perspective Development Plan.

Source: Ethiopian News Agency