Ethiopia bondholders reject government’s $1 bln bond restructuring outline

Ethiopia became Africa’s third default in as many years in December 2023. Progress on debt restructuring has been sluggish amid slow movement on reforms and drawn-out negotiations of a $3.4 billion programme with the International Monetary Fund.

During a call with global investors on Tuesday, the government sketched out “illustrative” terms of a bond restructuring, saying an 18% haircut – or writedown – on the nominal value of its sole outstanding dollar bond, excluding past due interest, would be compatible with debt sustainability targets.