Ethiopian Prime Minister Calls for Cancellation of Poor Country Debt

The New York Times published on 30 April 2020 a commentary titled "Why the Global Debt of Poor Nations Must Be Canceled" by Abiy Ahmed.

Ethiopian Prime Minister Abiy Ahmed said the offer by the Group of 20 countries to suspend debt repayments by the world's lowest income countries is a step in the right direction, but it needs to be more ambitious. He called on creditor nations to extend the debt repayment moratorium until the coronavirus is over or to cancel the debt altogether.

Comment: While Prime Minister Abiy is correct that creditor nations need to be as flexible as possible in dealing with the debt crisis facing the poorest nations, seventeen countries in Africa, including Ethiopia, were identified by the International Monetary Fund as in debt distress or at high risk of debt distress BEFORE COVID-19 was even known to exist. To some degree, Prime Minister Abiy's request sounds like a get out of jail free card.