Ethiopia has reached an agreement in principle with the Ad Hoc Committee of eurobond holders to restructure its 2024 notes. This breakthrough follows more than two years of seeking debt relief and over a year since defaulting on interest payments. The Ministry of Finance announced the deal on Friday.
Ethiopia has secured an agreement in principle with the Ad Hoc Committee of eurobond holders on the key financial terms for restructuring its 2024 notes. The deal focuses on the USD 1 billion 6.625 percent notes due in 2024.
Discussions took place between December 23 and January 1, 2026, during a restricted period, as stated by the Ministry of Finance. The ministry engaged with the committee, described as a group of holders, and both parties—Ethiopia and the committee—aimed to explore restructuring options for the notes.
This development marks a significant step after Ethiopia began pursuing debt relief over two years ago and defaulted on interest payments more than a year ago. The Ministry of Finance made the announcement on Friday, highlighting the agreement's emphasis on principal financial terms. Such restructurings are common amid Ethiopia's economic challenges, including conflict and foreign exchange shortages, and could help stabilize the country's finances.