In a major development, Ethiopia has gained over $1.5 billion in savings from approved debt relief, as National Bank Governor Mamo Mihretu announced while presenting the regulatory body’s first quarter report of the current fiscal year.
Addressing parliament today, Mamo revealed international creditors have granted Ethiopia a temporary suspension of debt repayments totaling billions through next year.
This considerable cash flow reprieve will immediately go towards bolstering the country’s depleting foreign reserves.
Mamo said the debt standstill was signed off by creditors France and China, who head the committee overseeing Ethiopia’s obligations. Rather than outgoing funds, the package reroutes over $1.5 billion directly into Addis Ababa’s coffers.
Mamo said negotiations with the IMF to acquire foreign exchange are also advancing positively.
If sealed, further currency inflows would provide a welcome injection for the financial authorities’ stabilization goals.
