Ethiopia's Ministry of Finance announced on May 27, 2026, that talks with private bondholders over restructuring a $1 billion eurobond have ended without agreement after the Ad Hoc Committee rejected a revised proposal.
The restricted dialogue sessions ran from May 6 to May 27, 2026. They focused on meeting the Comparability of Treatment principle set by the Official Creditor Committee. An earlier plan from January 2024 had included a Value Recovery Instrument, but this was dropped in the revised offer after the committee found it unsuitable.
The new proposal called for $880 million in bonds with a 12 percent principal reduction. It carried a 4.25 percent interest rate and a maturity of July 15, 2029, along with a schedule of four principal payments starting in 2026. It also included clearing $99.375 million in past due interest.
The Ministry of Finance expressed disappointment at the rejection yet stated its commitment to finding a market-based solution that aligns with the Official Creditor Committee rules and the International Monetary Fund program.
