Active Development AidData Chinese Aid

China Eximbank provides 1.5 year principal repayment suspension to Ethiopia in 2023

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Ethiopia
Country	Ethiopia
Start Date	Nov 18, 2023
End Date	Oct 09, 2033
Duration	3,613 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`106664`

Grant Description

On November 18, 2023, the Government of Ethiopia announced that it reached an agreement with the China Eximbank to suspended its debt payment obligations until July 4, 2024.

An IMF report reveals that the principal suspension retroactively applied to all debts that were due on January 1, 2023.

This debt suspension was expected to provide relief to the Government of Ethiopia after economic hardship in the country was accelerated by a civil war (2020-2022).

📋 Staff Comments

1. Neither the Government of Ethiopia nor the IMF revealed the exact Chinese institution that participated in the debt rescheduling. However, an IMF report points out that China participated in Ethiopia's Official Creditors' Committee (OCC). Commonly, China Eximbank represents China in these committee discussions. In addition, according to Ethiopian government sources, MOFCOM loans continued to be repaid in 2023 and 2024. Hence, AidData assumes China Eximbank participated in the debt rescheduling. This issue warrants more investigation. See the IMF report at https://www.mofed.gov.et/media/filer_public/da/15/da150f60-a08c-440d-832c-111410cc1f85/public_sector_debt_statistical_bulletin_no_51-final12.pdf

📚 Sources & References

Ethiopia seeks debt relief from other creditors after China
IMF official says
Ministry of Finance - Ethiopia
Ethiopian authorities discuss release of $1.3 billion suspended loan with Chinese counterparts
Ethiopia’s bond bust: A decade from darling to default
Ethiopia’s Debt Crisis: What Next?
One Hundred and Fifth Sovereign Debt News Update: Ethiopia Agrees on Bilateral Debt-Service Suspension and Seeks Eurobond Restructuring
Relief for PM Abiy: repayment of Ethiopia’s $14 billion dollar Chinese debt on hold – for now
Ethiopia Secures Two-Year Debt Suspension Deal with China
Easing Financial Strain
The Paris Club welcomes the agreement to provide Ethiopia with a debt standstill
China allows Ethiopia to suspend debt payments in 2023/24
China pledges support and debt relief in major economic restructuring deal
Ethiopia agrees bilateral debt-service suspension, seeks Eurobond restructuring
Addis enters the debt talks tunnel Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.

All Grantees

Government of Ethiopia

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