Addis Ababa, August 25/2020(ENA) Debt cancellation, restructuring and suspension for African nations are underneath dialogue with the Authorities of China, Ethiopia’s Ambassador to China mentioned.
Ambassador Teshome Toga advised ENA that discussions have been held with the Authorities of China on methods of debt cancellation and restructuring.
“We have actually two frameworks,” the ambassador mentioned, including that “one is the Forum on China-Africa Cooperation (FOCAC) and the second a bilateral mechanism.”
Primarily based on these two frameworks, the Ethiopian authorities had introduced its proposal which is underneath negotiation.
It’s to be recalled that Prime Minister Abiy Ahmed had final March proposed a 150-billion USD emergency financing package deal for Africa to fight the unfold of COVID-19.
Ethiopia proposed that each one curiosity funds to authorities loans must be written off. Moreover, a part of the debt of low-income nations must be written off.
In his assertion the premier mentioned “coronavirus poses existential threat to the economies of African countries. Our economies, fragile and vulnerable even in the best times, will face serious shocks following this crisis.”
Following the settlement reached by G-20 nations Ethiopia has introduced its proposal to China, Ambassador Teshome mentioned. The G-20 nations resolution mainly advocates debt cost suspension, “ but in our view this is not sufficient enough.”
He famous that African nations want new funding. “ We need a new injection of capital in order to stimulate and handle our economy in the post-COVID-19 era.”
Ethiopia’s Ambassador to Germany, Mulu Solomon mentioned on her half the proposal introduced by Prime Minister Abiy Ahmed is a good initiative that may assist African nations address the coronavirus pandemic.
“Prime Minister Abiy has presented a proposal for donors and lenders that they should seriously consider given the COVID-19 pandemic. This is under process, and it is a great initiative. We all are working on this,” she acknowledged.