Ethiopia’s long-awaited International Monetary Fund program requires clear commitments from development partners and financing assurances from creditors on the nation’s debt-restructuring plan for funding to be approved, the Washington-based lender said. The Horn of Africa nation is in talks with the lender about a loan of at least $2 billion. The government must initiate a new funding program to proceed with an overhaul of up to $28.2 billion of external debt. Ethiopia requested in early 2021 a debt rework under the Group of 20’s Common Framework, an initiative for restructuring government debt aimed at low-income countries. Progress was complicated by a two-year civil war that broke out in November 2020.
Ts & Cs of Ethiopia’s IMF Deal
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