External lenders extend the repayment period of half a million dollar debt for Ethiopia during the just-ended fiscal year, according to the Ministry of Finance.
The relief has been made based on the debt service suspension initiative, which was launched last year by the G20 countries in the aftermath of the coronavirus to contain the impacts of the pandemic on poor countries.
While five billion dollars has been extended to more than 40 eligible countries thus far, 33 more have been given the privilege to enjoy a temporary suspension of debt-service payments owed to their official bilateral creditors.
Though DSSI gave a breathing space for officials at the Ministry, more debt relief is expected from a common framework agreement, which allow Ethiopia get a debt extension from its leading commercial loan provider - China.
With a debt stock of around 28 million dollars from external lenders, the country spends at least one billion dollars in debt service annually.
