Finance Minister briefs Eurobond holders on Ethiopia’s macroeconomic performance

Addis Ababa, July 11, 2022 (FBC) –State Minister of Finance, Dr Eyob Tekalign held a fruitful discussion with various officials and investors on the sidelines of the Paris Forum.

He met with William Roos, Co-Chairperson of the Paris Club to get an update on the work of the creditor’s committee that was set up to address Ethiopia’s request for debt treatment under the G20 Common Framework.

Roos briefed the Ethiopian delegation on the promising progress by the creditor’s committee and assured that all of the bilateral creditors who are part of the committee stand ready to support Ethiopia’s request.

Roos also informed the delegation that the next creditor’s committee meeting is scheduled to continue its work. So far, the committee has met three times chaired by France and China.

Dr Eyob also met with Ethiopia’s Eurobond holders where he briefed them on the current macroeconomic performance of Ethiopia and the resolute commitment to service coupon payments despite the significant headwinds the global economy is facing.

The investors in their part appreciated Ethiopia’s diligence in honouring debt service obligations and discussed the performance of the Eurobond in the market in a tight liquidity environment.

They also noted the market discipline shown by Ethiopia in managing its debt vulnerability and shared their frank observations and extended their view regarding the common framework and the debt challenges faced by many countries.

The State Minister assured the investors of Ethiopia’s wish to be back into the credit market in the long term after addressing the macro constraints in line with the home-grown economic reform to fund development-focused projects.

The Ethiopian delegation also met with Patricia Pollard, Deputy Assistant Secretary at the US Department of Treasury and the US delegation at the Paris Club to discuss the Common Framework for debt treatment.

Dr Eyob briefed Pollard on the significant progress made by Ethiopia and the creditor’s committee and the overall effort by the chairs of the Paris Club to deliver the necessary financing assurance for Ethiopia.

Pollard for her part emphasized the interest of the US to see the Common Framework succeed and address the debt vulnerability of the three countries that so far requested debt treatment, according to the Ministry of Finance.