Ethiopia agreed to restructure a $1 billion bond with international investors. Ethiopia’s finance ministry said the initial restructuring agreement covers the financial terms of the debt and that it has been communicated to the International Monetary Fund, after talks with groups of bondholders at the end of last year.
Ethiopia has been among Africa’s fastest-growing economies in recent years, averaging above 6.5% between 2023 and 2024, and the government’s forecast for growth in the fiscal year ending in July is 8.9%. But it defaulted on its bond payment obligations in December 2023.
The East African country is the beneficiary of an ongoing $3.4 billion IMF credit program that was approved in mid-2023, of which about $2.1 billion has been disbursed.