Ethiopia’s push to restructure its debt is nearing completion, a development seen as crucial for stabilizing its struggling economy. The International Monetary Fund (IMF) has expressed strong support for the country’s economic reforms, highlighting the significance of the restructuring deal in unlocking further financial assistance.

Speaking at a joint press conference in Addis Ababa, Ethiopia’s Finance Minister Ahmed Shide confirmed that negotiations with creditors are in their “final stage” and expected to conclude soon. The process falls under the G20’s Common Framework for Debt Treatments and has been slow-moving but is now making significant progress.

Ethiopia defaulted on its $1 billion Eurobond in 2023 and has been grappling with a high debt burden. As of June last year, external liabilities reached $28.9 billion. Nearly half of this amount is owed to multilateral lenders such as the IMF, World Bank, and African Development Bank.

IMF Managing Director Kristalina Georgieva, who is visiting Ethiopia, reiterated the institution’s commitment to supporting the country’s economic recovery. “It’s on the top of my priority list,” she said, describing the debt restructuring process as being in the “final stretch.”

The restructuring is expected to be a key milestone in Ethiopia’s broader economic reform agenda, which includes a recently secured $3.4 billion IMF financing program. The agreement is anticipated to help Ethiopia manage its fiscal challenges, restore investor confidence, and pave the way for sustainable economic growth.

With the IMF’s backing and creditor negotiations nearing completion, Ethiopia’s government hopes the restructuring will provide much-needed relief and create room for further economic reforms.