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Significance Addis Ababa must reach an agreement with the IMF to honour its commitments under its debt-service suspension agreement with official creditors. Thereafter, further talks will be required to finalise a drawn-out debt restructuring process. Impacts Restructuring talks with bondholders remain complicated and Ethiopia may yet default on the principal of its USD1bn Eurobond in December. With an IMF programme and increased donor grants, the budget deficit will likely be gradually reduced. The government will press ahead with its economic reforms, including attempts to implement large-scale privatisations.
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