Negotiations over Ethiopia’s one-billion-dollar Eurobond have broken down. Private creditors are preparing a formal lawsuit in a UK court after a default that began in late 2023.
The stalled restructuring has created direct tension between private bondholders seeking viable financial returns and international frameworks that impose strict fiscal boundaries. The Ministry of Finance now confronts a severe legal standoff. This situation threatens the country's macroeconomic outlook amid heightened global commodity volatility. The default dates back to late 2023. Creditors have escalated preparations for court action in the United Kingdom.