Ethiopia Secures Debt Relief Deal, Buys Time for IMF Bailout Talks
• Ethiopia agreed with bilateral creditors, excluding China, to suspend debt payments until 2025 • The deal is contingent on Ethiopia securing an IMF loan by March 31, 2024 • The pause will provide $1.5 billion in relief and payments will be made from 2027-2029 • Ethiopia requested debt restructuring in 2021 under the G20 Common Framework • The debt relief will allow time for broader restructuring talks ahead of a potential IMF bailout deal