Ethiopia and Italy have signed a bilateral debt restructuring agreement under the Official Creditor Committee framework, as part of the G20 Common Framework for debt treatment. The agreement was signed by Ethiopia’s Minister of Finance, Ahmed Shide, and Italy’s Minister of Economy and Finance, Giancarlo Giorgetti.
The agreement forms part of Ethiopia’s broader efforts to manage public debt and support its ongoing macroeconomic reform program. Ethiopian officials said the deal follows the Memorandum of Understanding reached in July 2025 and reflects continued engagement between the two countries on economic matters.
During the signing ceremony, Ahmed Shide stated that Italy had played an important role in the process leading to the bilateral agreement. Giancarlo Giorgetti said the agreement was consistent with Ethiopia’s reform agenda and with Italy’s Mattei Plan for Africa, under which Ethiopia is considered an important partner.
In separate discussions held in Rome, an Ethiopian delegation led by Ahmed Shide also met with Italian officials to discuss financing for priority development projects. Among the issues discussed was support for the Koysha Hydropower Project, including efforts to address the remaining financing gap. Both sides noted progress in refinancing and new financing arrangements and said the remaining steps would be finalized in the coming months.
The talks also covered the planned Bishoftu Airport project. Italian officials expressed interest in supporting financing for selected components of the project through Italian financial institutions. The two sides agreed to begin technical discussions involving Ethiopian Airlines Group, as well as financial and technical advisers, to further examine possible financing structures.
The Ethiopian delegation included Ambassador Demitu Hambisa and senior officials from the Ministry of Finance and Ethiopian Airlines Group. Italian support was also discussed in relation to Ethiopia’s development policy program, in coordination with the World Bank budget support initiative.
Source (including image): Ethiopian News Agency
