Ethiopia’s Debt Restructuring Dilemma: Bondholders Reject 18% Haircut

The Habesha (Bloomberg) Investors holding Ethiopia’s defaulted dollar bonds have rejected the debt-restructuring terms proposed by the government for the $1 billion issue. An ad hoc committee representing holders of the sovereign notes maturing Dec. 2024 said Ethiopia’s proposal of an 18% haircut on the bond’s principal is “wholly inconsistent” with the nation’s economic fundamentals. “The committee does not consider the illustrative terms to be a reasonable starting point for negotiation,” it said in a statement Thursday. The government spelled out its offer Tuesday on a call with bondholders, even though the ad hoc group, which holds over 40% of the The Habesha Ethiopian News

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