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  • 5 weeks ago
Ethiopia faces unsustainable external debt, World Bank and IMF warn

The World Bank and the International Monetary Fund have warned about Ethiopia's debt distress, labeling it "unsustainable."

READ MORE : http://www.africanews.com/2025/09/23/ethiopia-faces-unsustainable-external-debt-world-bank-and-imf-warn

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Transcript
00:00The World Bank and the International Monetary Fund have warned about Ethiopia's debt distress,
00:06labelling it unsustainable.
00:08The two financial bodies further reveal that Ethiopia faces political, economic and humanitarian challenges
00:13and its debt is assessed to be unsustainable,
00:17mainly due to protracted breaches of exports-related external debt indicators.
00:23The report also revealed that Ethiopia's debt repayment has been made more difficult
00:27by the accumulation of both short-term and medium-term debt service payments.
00:33Ethiopia's low debt-carrying capacity classifies it as being in debt distress
00:37following the default on the $33 million euro bond coupon payment.
00:42This problem is also linked to the country's economic difficulties,
00:46including the ongoing armed conflicts in regions such as Samhara and Eromia.
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