Addis Ababa, Jan 30 – Ethiopia has halted implementation of its $1 billion Eurobond restructuring after its Official Creditor Committee determined that the agreed terms violate the Comparability of Treatment principle, a standard ensuring fair treatment across creditors.
The Ministry of Finance on Friday said the assessment follows consultations with the Official Creditor Committee and the International Monetary Fund (IMF) to ensure the January 2 agreement with holders of the 6.625 percent 2024 Notes aligns with internationally recognised frameworks. The OCC’s formal letter concluded that the terms do not fully meet these requirements.
Ethiopia cannot proceed with the restructuring under the current terms without breaching the official-sector debt framework established in July 2025. Authorities cited potential risks to macroeconomic stability and the country’s economic progress.
The restructuring is part of Ethiopia’s wider efforts to address a sovereign debt crisis that followed its default on the 2024 Eurobond, one of Africa’s largest sovereign defaults.
The East African nation is also negotiating with official creditors under the G20 Common Framework for Debt Treatments, which coordinates debt relief among government lenders, while implementing reforms supported by a four-year IMF programme designed to stabilise the economy and restore debt sustainability.
The country will reopen discussions with the Ad Hoc Committee to revise the financial terms of the 2024 Notes. Officials said any revised deal will aim to satisfy both private investors and official creditors while remaining consistent with IMF commitments.
