The G20 Debt Service Suspension Initiative (DSSI) aims to ‘temporarily ease the financing constraints’, with the IMF and World Bank providing technical assistance. Ethiopia, like many African countries, is facing two debt management structures: the Paris Club (IMF and World Bank (WB) included) and China’s frameworks. The establishment of a Creditor’s Committee headed by France and China signals a step towards a bilateral management of debt.
“It is a good omen and we can hope for a restructuring that is tailored to the particular situation of each country, with more transparency on the amount of debt owed. Mid-term results (3 to 5 years) will also be decisive. If this approach is effective in stabilising public finances, it will also be in the interest of Paris Club members and China to maintain it,” Estelle Prin, China analyst and lecturer in geopolitics at Sciences Po Lyon, tells The
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