- Providing updates of the ongoing Home Grown Economic Reform Agenda on a global investors call with eurobond holders on October 1st , 2024, Finance State Minister reaffirmed that Ethiopia is adherent to the principle of Comparability of Treatment (CoT) to sustain debt restructuring.
According to the press release by Ministry of Finance, Ethiopia successfully hosted a Global Investors Call, bringing together key stakeholders and investors to discuss Ethiopia's macroeconomic status, reform agenda, as well as future path.
The meeting held virtually, was led by Finance State Minister Eyob Tekalign (PhD). The State Minister provided participants update on the national economic outlook and its strategies for debt restructuring and long-term sustainability, also reaffirmed Ethiopia's commitment to ensure all creditors are treated equitably, it was stated on the release.
During the call, Eyob provided critical insights into Ethiopia's current debt restructuring efforts under the G-20 Common Framework. Ethiopia outlined its approach to ensuring long-term debt sustainability, including the transition to a market-determined exchange rate and the implementation of stricter fiscal policies aimed at reducing inflation and rebuilding foreign exchange reserves.
"Ethiopia's ongoing efforts to address its external debt challenges were a central theme of the discussion. The government reiterated its commitment to negotiating with both official and commercial creditors to restore debt sustainability and resolve liquidity and solvency issues."
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To ensure equitable treatment of all creditors, Ethiopia has been actively engaging with its bilateral and commercial creditors, including its bondholders. While progress has been made with official creditors, discussions with bondholders remain ongoing.
The government called for continued cooperation and transparency in the negotiations, urging bondholders to engage in constructive discussions aimed at finding a restructuring solution compatible with the requirements of Ethiopia's IMF program and respectful of the principle of comparability of treatment under the G-20 Common framework.
Despite global challenges, Ethiopia has maintained its dedication to reform and growth, demonstrating a strong commitment to meeting its financial obligations.
"Despite turbulences, whether external or domestic, Ethiopia has consistently demonstrated resilience and strength. We take great pride in meeting our financial obligations, even during challenging times," Eyob stated.
