Ethiopia’s bid to restructure its USD 1 billion Eurobond stalled as creditors rejected the agreement in principle.
AIP terms included a 15% haircut, new USD 850 million bond, and USD 350 million repayment due July 2026.
Creditors cited comparability of treatment concerns under the official restructuring framework.
Ethiopia defaulted on the Eurobond in late 2024.
Government says it will continue constructive negotiations with official and private creditors.
Why it matters:
The rejection of the initial restructuring agreement delays Ethiopia’s efforts to manage external debt obligations and could influence its access to international capital markets. Progress on a compliant restructuring plan is critical for debt sustainability and investor confidence.