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Ethiopia Seeks Yuan Loans to Restructure $5.38B Debt

10/20/2025

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Summary

Story summary

Ethiopia is negotiating to convert part of its $5.38 billion debt into yuan-denominated loans, initiated by Eyob Tekalign, governor of Ethiopia's central bank, during Beijing visit.
The move follows a broader trend of countries seeking cheaper financing after Kenya's debt swap.
Ethiopia pursues debt restructuring with multiple creditors after a 2023 default, aiming to ease burdens.
The government aims to finalize official-creditor agreements by year-end while negotiating with Eurobond holders.

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Story summary

Ethiopia is negotiating to convert part of its $5.38 billion debt into yuan-denominated loans, initiated by Eyob Tekalign, governor of Ethiopia's central bank, during Beijing visit.
The move follows a broader trend of countries seeking cheaper financing after Kenya's debt swap.
Ethiopia pursues debt restructuring with multiple creditors after a 2023 default, aiming to ease burdens.
The government aims to finalize official-creditor agreements by year-end while negotiating with Eurobond holders.