Ethiopia plans to seek a restructuring of its sovereign debt under a new G20 common framework and is looking at all the available options, the country’s finance ministry announced earlier this year. The Paris Club of sovereign creditors has now called for a creditor committee to be formed quickly to handle Ethiopia’s request to restructure its debt.
The United Nations Secretary-General António Guterres called attention to the debt crisis facing many developing countries during a high-level meeting on financing development post-COVID-19 in March 2021. “The inability of developing nations to spend on post-COVID-19 recovery and resilience has placed the world on the verge of a debt crisis” Guterres said. He further underlined that developing nations needed access to liquidity to allow them to sufficiently respond to the pandemic and invest in recovery.
