Ethiopia debt service pause contingent on IMF deal by March 31, 2024 - Paris Club
Ethiopia's agreement with its bilateral creditors, other than China, to suspend debt payments until 2025 could be voided if the country does not secure an International Monetary Fund (IMF) loan by March 31, 2024, the Paris Club of developed creditor nations said. The debt service standstill for 2023 and 2024 applies to loans agreed before Nov. 10 and will see suspended payments repaid from 2027 to 2029 after a grace period from 2025 to 2026, the Paris Club said in a statement, noting that the deal was reached on Nov. 23. Ethiopia's economy is under pressure from double-digit inflation and foreign currency shortages, 13 months after the federal government and forces from the northern Tigray region signed a truce to end a two-year civil war.
