Ethiopia’s Ministry of Finance has finalized a Memorandum of Understanding (MoU) with its Official Creditor Committee (OCC), formalizing a debt treatment agreement first reached in principle in March 2025. The deal grants Ethiopia over USD 3.5 billion in debt relief, marking a step toward restoring long-term public debt sustainability after years of negotiations.

The government expressed its deep gratitude to OCC members, especially the committee’s co-chairs, China and France, for their crucial role in supporting the process. The agreement’s terms will now be implemented through bilateral deals with each OCC member.

Finance State Minister Eyob Tekalign Tolina voiced optimism about swiftly concluding these bilateral agreements, highlighting Ethiopia’s continued good-faith engagement with other external creditors to secure debt restructuring under terms that respect the comparability of treatment principle.

Officials hope the agreement will boost investor confidence and support the country’s efforts to achieve sustainable economic growth amid ongoing global and domestic challenges.

Source (including image): Ethiopian News Agency