On its Global Investor Call the Ministry of Finance (MoF) expressed its strong desire to reach an agreement swiftly with Ethiopia’s bondholders and restore normal relations with all creditors at the earliest opportunity. It further emphasized transparency, good faith, and an equitable approach to all external creditors.
In its statement MoF issued on Friday, it said that the proposed debt treatment parameters are designed to minimize the risk of future adjustments due to concerns over comparability of treatment and non-compliance with the Debt Sustainability Analysis. It acknowledges the risks bondholders will bear and is open to discussing possible mitigations, including a loss reinstatement provision.
The announcement “demonstrates Ethiopia’s commitment to managing its debt responsibly and ensuring that all stakeholders are treated fairly amidst ongoing economic challenges.”
