{"id":13303,"date":"2025-10-14T10:03:44","date_gmt":"2025-10-14T08:03:44","guid":{"rendered":"http:\/\/jhb-webdevelopers\/channelafrica\/news\/ethiopias-debt-restructuring-hits-impasse-bondholders-eye-legal-action\/"},"modified":"2026-02-27T16:26:18","modified_gmt":"2026-02-27T14:26:18","slug":"ethiopias-debt-restructuring-hits-impasse-bondholders-eye-legal-action","status":"publish","type":"news","link":"https:\/\/www.channelafrica.co.za\/channelafrica\/news\/ethiopias-debt-restructuring-hits-impasse-bondholders-eye-legal-action\/","title":{"rendered":"Ethiopia&#8217;s debt restructuring hits impasse, bondholders eye legal action"},"content":{"rendered":"<div>\n<p class=\"x_MsoNormal\">Ethiopia said on Tuesday that debt restructuring negotiations with its bondholders had failed to produce a deal due to ongoing differences over the terms.<\/p>\n<\/div>\n<div>\n<p class=\"x_MsoNormal\">The East African nation defaulted on its sole international bond in late 2023 after it opted for a restructuring under the G20&#8217;s Common Framework initiative, which requires comparable terms for official sector creditors and commercial bondholders.<\/p>\n<\/div>\n<div>\n<p class=\"x_MsoNormal\">Ethiopia&#8217;s government said despite the lack of a deal &#8220;substantial progress&#8221; had been made. It said it hoped talks would resume &#8220;in the foreseeable future&#8221;.<\/p>\n<\/div>\n<div>\n<p class=\"x_MsoNormal\">Both sides have been arguing over whether a restructuring should involve a write down of the principal amount, known as a haircut, or not.<\/p>\n<\/div>\n<div>\n<p class=\"x_MsoNormal\">In a bid to overcome the deadlock, bondholders had proposed the government provide a so-called &#8220;Value Recovery Instrument&#8221;, effectively an additional bond that would allow them to recoup some of their lost money if the country&#8217;s export sector performs well in the next few years.<\/p>\n<\/div>\n<div>\n<p class=\"x_MsoNormal\">The committee of bondholders said it was disappointed by the failure of the talks.<\/p>\n<\/div>\n<div>\n<p class=\"x_MsoNormal\">It added that it had not seen the restructuring terms Ethiopia struck with official sector lenders and that the committee would now consider all options including legal action.<\/p>\n<\/div>\n<div>\n<p class=\"x_MsoNormal\">&#8220;While it remains open to considering revised proposals from Ethiopia, the Committee has determined that, at this stage, negotiations have reached an impasse,&#8221; it said in a statement.<\/p>\n<\/div>\n<div>\n<p class=\"x_MsoNormal\">The defaulted bond at the centre of the negotiations fell 1 cent in the Dollar following Tuesday&#8217;s statements, although it remains close to its highest price level since early 2021 at 95 cents to the Dollar.<\/p>\n<\/div>\n<div>\n<p class=\"x_MsoNormal\">&#8211;Reuters&#8211;<\/p>\n<\/div>\n","protected":false},"featured_media":13304,"template":"default||default","meta":{"_acf_changed":false},"news-type":[44],"class_list":["post-13303","news","type-news","status-publish","has-post-thumbnail","hentry","news-type-finance","entry"],"acf":{"short_description":"","published_date":null,"news_description":"Ethiopia's debt restructuring negotiations||Ethiopia's debt restructuring negotiations","form_embed":"","author":"","image_caption":""},"_links":{"self":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/13303","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/types\/news"}],"version-history":[{"count":1,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/13303\/revisions"}],"predecessor-version":[{"id":18486,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/13303\/revisions\/18486"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media\/13304"}],"wp:attachment":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media?parent=13303"}],"wp:term":[{"taxonomy":"news-type","embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news-type?post=13303"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}