Ethiopia has asked for debt relief under a G20 programme to help poor countries reeling under the economic impact of coronavirus, making it the second African country to do so in the past week.
Ethiopia has long been seen as one of Africa’s most promising economies but the pressure the pandemic has placed on healthcare systems and economies means many developing nations are struggling to keep up with debt payments.
In a statement on Monday, its finance ministry said that it was “preparing for upcoming discussions with official creditors” as it looks to reduce “debt vulnerabilities and lower the impact of debt distress”.
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“Ethiopia is trying to explore the options for broader debt relief,” said Kevin Daly, investment director at Aberdeen Standard Investments. “This is their way of saying things are difficult, we need further relief. What we don’t know is how this will work in practice. There is a lack of clarity right now.”
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