Ethiopia’s official international creditors will give the East African nation until the end of June to wrap up talks on IMF support after a prior deadline lapsed, a source close to the Paris Club of creditors said on Wednesday.
The Paris Club, a consortium of predominantly developed country creditors, has reportedly granted Ethiopia a three-month extension to secure a preliminary bailout agreement with the International Monetary Fund (IMF), pushing the deadline to the end of June.
This development, revealed by an anonymous source close to the group, underscores the ongoing financial turmoil facing Ethiopia as it navigates through its debt crisis.
Ethiopian National Bank Governor Mamo Mihretu expressed a guarded welcome to the extension, emphasizing the country’s appreciation for the creditors’ committee’s decision.
However, his response, lacking direct confirmation of the extension details, reflects the precarious nature of Ethiopia’s financial negotiations. The Paris Club’s silence on the matter further adds to the atmosphere of uncertainty.