April 16, 2024

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Ethiopian govt Paris club

Ethiopian Govt Gets Extension in Deadline from Paris Club

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Ethiopian Govt seems to have secured an extension in a deadline announced by a group of creditors in November 2023.

Last year Paris Club members countries and China suspended Ethiopian loan payments for two years. But the relief was contingent on staff level agreement between Ethiopia and IMF by March 2024. Ethiopian govt has been in talks with International Monetary Fund (IMF) for more than a year to get a bailout package of around $3 billion.

An IMF delegation concluded its visit to Ethiopia on Tuesday. The delegation held talks for around two weeks in Addis Ababa. No agreement could be reached. But the delegation head announced that progress had been made and talks would resume later this month.

The deadline issued by Paris Club members expired this week. According to sources close to these developments, Paris Club members have agreed to extend the deadline till June 2024. Ethiopian National Bank Chairman Mamo Mehretu this week told journalists that progress had been made in talks with IMF.

So far Paris Club or China have not formally announced the deadline extension. Ethiopian govt is set to make some tough economic decisions in coming days including removal of subsidies and devaluation of its currency, birr. Currency devaluation has been one of pre requisites demanded by IMF for a bailout package reportedly.

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