The World Bank and the International Monetary Fund have warned about Ethiopia's debt distress, labeling it "unsustainable." The two financial bodies further revealed that "Ethiopia faces political, economic, and humanitarian challenges, and its debt is assessed to be unsustainable, mainly due to protracted breaches of exports-related external debt indicators. The report also revealed that Ethiopia's debt repayment has been made more difficult by the accumulation of both short-term and medium-term debt service payments. Ethiopia's low debt-carrying capacity classifies it as being in debt distress following the default on the $33 million Eurobond coupon payment. If fully implemented, it would close financing gaps and reduce the risk of debt distress to moderate levels by 2027/28, when the IMF program ends.