My husband went to Mekele to offer assistance but never heard from him

The sad story of the family on the New Chapter program. My husband went to Mekele to deliver help and didn’t hear from him. Inadequate transparency over a debt owed to Chinese lenders, such as Chinese loans to state-owned enterprises, is of concern. Additionally, slow progress in discussions with the IMF and the resurgence of the conflict since August possibly delayed the IMF’s visit in September. A debt sustainability analysis is desirable for the G20 Common Framework to finalize possible debt restructuring. During their July 19 meeting, the creditor’s committee welcomed talks in June between the Ethiopian government and the IMF and looked forward to further discussions about an IMF support program, which is necessary for debt relief. A debt restructuring technically stands as a default. The main reason for the credit rating agencies’ downgrade has been the uncertainty surrounding whether private creditors will be included and to what extent private creditors will be impacted by Ethiopia’s debt restructuring. This concern remains, especially with the Eurobond payment coming up in 2024 and the severe depletion of forex. If the IMF deems the overall financial situation to be so severe that an across-the-board debt restructuring is needed to reach or arrive at a more sustainable financial/debt situation, then the IMF would put pressure on private creditors to follow suit with a debt restructuring. A prolonged conflict significantly impacts finance, making private creditors more likely to be involved. Generally, the consequence for private creditors is the loss of the principal amount loaned to the government as well as the interest earned on the debt.