International creditors have announced plans to sue the Ethiopian government following the rejection of a revised proposal to restructure the country's $1 billion Eurobond debt.
Creditors rejected Ethiopia's latest debt restructuring offer after negotiations that began on May 6 ended without agreement. A committee representing the holders said it would file a lawsuit in a UK court to enforce its rights, following a pre-action warning issued in April.
Ethiopia defaulted on the Eurobond at the end of 2023 after missing an interest payment. An earlier preliminary agreement reached in January was rejected by the Official Creditor Committee co-chaired by France and China over concerns about comparability of treatment.
The Ethiopian Ministry of Finance expressed disappointment at the creditors' decision but said the country remains committed to finding a market-based solution that aligns with its International Monetary Fund program.