Ethiopia’s External Debt Dilemma

Ethiopia’s External Debt Dilemma

 Source: Reuters published on 1 October 2024 an article titled “Ethiopia Expects ‘Tangible Progress’ on Deal with Creditor Nations by December” by Duncan Miriri.

Ethiopia defaulted on its external debt in December 2023 and hopes to reach a deal with creditors by the end of this year.  Ethiopia’s debt stands at about $29 billion with half of it owed to multilateral lenders like the IMF, World Bank, and African Development Bank.  Of the $12 billion owed to bilateral lenders, China accounts for more than $7 billion, Paris Club countries under $2 billion, and Saudi Arabia just over $1 billion.