Breaking News
Investing Pro 0
🚨 Our Pro Data Reveals the True Winner of Earnings Season Access Data

Exclusive-Ethiopia debt relief delay partly due to civil war: state finance minister

Economy Oct 15, 2022 01:50PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters

By Jorgelina do Rosario and Rachel Savage

WASHINGTON/JOHANNESBURG (Reuters) - Delays in restructuring Ethiopia's debt due to the failings of a new global mechanism for resolving debt problems are "disappointing," the east African nation's state finance minister said on Saturday, adding that he planned to raise it with the head of the IMF later in the day.

Africa's second-most populous country requested a debt restructuring under the Group of 20's Common Framework process in early 2021, but progress has been complicated by a civil war that broke out in November 2020 and has delayed progress with creditors on a debt workout.

Ethopia's state finance minister Eyob Tekalign Tolina acknowledged the war was a key factor in the delay as well, and said he hoped there would be peace talks in "the coming few weeks" in an interview with Reuters on the sidelines of the International Monetary Fund-World Bank annual meetings in Washington.

The conflict pits Ethiopia's federal government against regional forces led by a party that used to dominate national politics. Thousands of civilians have been killed and millions uprooted by the violence.

"It's completely disappointing that it has stuck," Eyob said of the Common Framework. "We trusted the fund and we trusted G20 countries."

Ethiopia's bilateral creditors co-chaired by France and the largest creditor China - which Eyob said was represented by China Eximbank - recommitted to granting debt relief in August, but further progress requires an IMF deal.

France and China have "done a commendable job in navigating through this difficult journey," said Eyob.

He said Ethiopia was requesting "exceptional access" to IMF funding of more than 100% of its allowance, but declined to say how much exactly.

"I think the (IMF) board would see that the government has done everything in its power to resolve this conflict peacefully," he said. "As you know, we have been calling for the AU process, the AU-led peace talks, which is advancing now."

Peace talks that would have been the first formal negotiations between the two sides were scheduled last weekend, but delayed due to logistical reasons, diplomatic sources said.

"Ethiopia does not have a solvency issue, it's more of a short-term liquidity issue," Eyob said, adding that there was no danger of it defaulting on its debts.

He declined to specify how much debt relief the country requires, saying that the IMF still needs to finish a Debt Sustainability Analysis, which forms the basis of debt restructurings.

Eyob said he expected the DSA to be finalised in November.

The IMF did not immediately respond to a request for comment.

Ethiopia's government plans to finish working out how its banking sector will be liberalised this year, Eyob said, adding that about a dozen European and African banks had expressed interest.

GDP growth was "over 6%" in the year to July 2022, he said, and the forecast is 9.2% for 2023, Eyob said.

The east African country has long experienced foreign exchange shortages, with the IMF forecasting its reserves to fall from 1.5 months of import cover in 2021 to 0.7 this year.

The birr was this week trading at 90 to $1 on the black market, compared to 53 in banks.

"We've made it very clear, we want to reform our forex regime," Eyob said. "So the exchange rate unification remains one important policy goal, but we are just doing it gradually."



Exclusive-Ethiopia debt relief delay partly due to civil war: state finance minister

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your profile, will be public on and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Brandon Schneider
Brandon Schneider Oct 15, 2022 2:00PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I was one time afraid of online investment until I was encouraged by a friend to give it a try. I gave it a thought and decided to try but the results cleared all the doubts I had about online investment. I testify of the guidance of Joe Peterson my mentor, through his mentoring I successfully invested $30k and got the huge profit of $180k. I promise you will be next to testify if you trade with him on his 🆃🅔🅛🅔🅶🅡🅰🅼:(JOEPETERSONTEAM) or 🅦🅗🅐🅣🅢🅐🅟🅟 +(44)📳 745📳535📳 5702.⏪
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email