The Ministry of Finance of Ethiopia announced an Agreement in Principle (AIP) with its Official Creditor Committee (OCC) regarding a debt treatment under the G20 Common Framework. The agreement addresses approximately USD 8.4 billion of Ethiopia’s outstanding public debt.
The AIP outlines a debt service relief of approximately USD 2.5 billion over the period 2023-2028. The agreement also includes provisions for a revised external redemption profile and reduced debt servicing costs.
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The Ethiopian government has committed to a debt service reduction of USD 3.5 billion over the IMF program period as part of a previously agreed financing package.
The terms of the AIP will be formalized in a Memorandum of Understanding and subsequently implemented through bilateral agreements with OCC members.
