Ethiopia to Suspend Debt Payments, Restructure Eurobond
- Horn of Africa nation agrees to interim debt-service pause
- Eurobond yields climb after announcement of agreement
A market in Addis Ababa
Photographer: Michele Spatari/AFP/Getty ImagesThis article is for subscribers only.
Ethiopia reached an in-principle agreement with bilateral creditors to temporarily suspend debt payments and plans to start talks to restructure its $1 billion eurobond maturing next year.
The Horn of Africa nation has been seeking to rework its liabilities since 2021 as a civil war in the northern Tigray region soured investor sentiment and sapped economic growth. China recently agreed separately to a pause in repayments and the government is also working toward an International Monetary Fund program.