Ethiopia Formally Pledges Equal Treatment in Ongoing Debt Restructuring Talks

The Ethiopian government formally affirmed all external creditors should be equally treated under the framework of the Official Creditor Committee (OCC).

In a statement issued by the Ministry of Finance, the government said it had formally committed, under the terms of a memorandum of understanding with the OCC, not to offer more favorable repayment terms to creditors outside the framework than those already granted to official bilateral lenders.

“The Government of Ethiopia formally commits to remaining in arrears towards those external creditors within the scope of the debt treatment with whom it has not reached a debt restructuring arrangement on terms considered by the OCC to be at least as favourable to Ethiopia as those set forth in the MoU,” reads the Ministry’s statement.

The commitment, known in sovereign debt negotiations as “comparability of treatment,” is intended to ensure that all external creditors share the burden of debt relief on similar terms.

Ethiopia said it would remain in arrears  until the restructuring process agreements are reached that are considered by the OCC to be “at least as favourable” to the country as the terms outlined in the memorandum.

“The Government of Ethiopia reaffirms its dedication to a fair, transparent, and orderly debt restructuring process consistent with the principles of the G20 Common Framework,” the statement said.

The Ministry added that it would continue negotiations “actively and in good faith” with remaining creditors as the country seeks to restore debt sustainability and strengthen long-term economic resilience.

Ethiopia, which applied for debt treatment under the G20 Common Framework in 2021, has been negotiating with bilateral, commercial and private creditors amid mounting external financing pressures, foreign currency shortages and the economic fallout from conflict and climate-related shocks.

Ethiopia reached an MoU agreement in mid-2025, under the OCC comparability of treatment principle, paving the way for broader restructuring discussions with other lenders.

المصدر: The Reporter (Ethiopia)