Ethiopia’s sole $1 billion eurobond is at the center of a fraught debate between a key investor group and the country’s bilateral creditors.
Addis Ababa agreed with a group of international investors last month to restructure the bond after the government defaulted in December 2023.
Still, some investors said they would take legal action after a creditor committee chaired by China and France blocked the initial restructuring agreement. The committee said the draft deal did not meet a threshold intended to ensure commercial and official creditors share losses fairly, while the investor group described the decision as “completely unreasonable.” Ethiopia has been among Africa’s fastest-growing economies in recent years, but delays in restructuring its debt has deterred international investors.