Ethiopia are not able to provide financial support29 Jul 2024 10:08
Since Ethiopia is in default, I'm not surprised finance is not available again this year.
As of December 27, 2023, Ethiopia is considered to be in default on its foreign debt, which is the third African country to do so in three years. The default came after the country failed to make a $33 million interest payment on its only international government bond on December 11, 2023. The Ethiopian government stated that it was unable to make the payment due to the country's "fragile external position", and that it wanted to treat all creditors equally.
The default was widely expected and is due to a number of factors, including:
The COVID-19 pandemic
A two-year civil war in Tigray that ended in November 2022
Depleted foreign exchange reserves
High inflation
Unsuccessful negotiations with pension funds and other private sector creditors
Billions of dollars in Chinese loans
The default has led to credit rating agencies downgrading Ethiopia and the collapse of the Ethiopian Eurobond on the stock market. Ethiopia is expected to join Zambia and Ghana in a restructuring under the Common Framework.