Ethiopia said it will reopen negotiations on its $1 billion Eurobond restructuring after official creditors rejected draft terms previously agreed with private bondholders, extending efforts to resolve the country’s debt crisis. The development was disclosed by government officials in Addis Ababa and highlighted in reporting by Reuters.
The earlier agreement in principle involved holders of Ethiopia’s 6.625% Eurobond, which matured in 2024, and proposed a reduction in principal alongside the issuance of a new bond. However, Ethiopia’s Official Creditor Committee, co-chaired by China and France, said the deal failed to meet the comparability of treatment requirement under the G20 Common Framework, Peoples Gazette Nigeria noted.
Following the rejection, the finance ministry said discussions would resume with both private bondholders and bilateral lenders to craft revised terms acceptable to all parties. Officials acknowledged the setback but stressed that securing a sustainable restructuring remains critical to restoring macroeconomic stability, as outlined in official statements cited by Stockmarket.et.
Economists say the outcome of the renewed talks will be central to Ethiopia’s efforts to exit default, rebuild investor confidence, and regain access to international capital markets. Progress on the bond deal is also closely tied to the country’s broader economic reform programme supported by the International Monetary Fund, market analysts said.
