Ethiopia Bondholders Say 18% Haircut Offer Isn’t Reasonable
- Creditors say proposal inconsistent with nation’s fundamentals
- Ethiopia also needs to rework debt owed to other countries
Addis Ababa.
Photographer: Amanuel Sileshi/BloombergThis article is for subscribers only.
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.