Ethiopia is in the process of restructuring an additional $1 billion of debt as it seeks to free up funds to support its economic recovery amid the global COVID-19 pandemic. However, the plan to restructure doesn’t include Eurobonds.
According to the Finance Ministry, restructuring the debt will provide a grace period of six years and extend the maturity by ten years. Already, $2.5 billion in principal and interest payment has been postponed for five years by commercial creditors under the first external debt restructuring scheme.
The announcement comes after Ethiopia, in January this year, requested to rework its debt under the Group of 20 common framework, an initiative to secure debt relief for poor nations from all creditors, including China and commercial lenders.
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