Finance Minister engages private bondholders in Ethiopia’s Debt Restructuring Talks

Finance Minister Ahmed Shide met with private bondholders to discuss Ethiopia’s debt treatment.
It has been a decade since the government issued a USD 1 billion Eurobond, which was due to be fully repaid by the end of last year.
The two sides agreed to continue negotiations as Ethiopia seeks debt relief from both official creditors and private bondholders.
According to Ethiopia’s diplomatic mission in Washington, D.C., the meeting focused on the country’s debt restructuring progress under the G20 Common Framework. This follows a principle agreement reached with Ethiopia’s Official Creditors Committee in March 2025.
Ethiopia is currently negotiating with international creditors, primarily G20 nations and private bondholders. While discussions with official creditors are progressing well, talks with bondholders remain unresolved.
In February, Ethiopia’s Eurobond holders accused the IMF of overstating the country’s financial challenges to advocate for deeper debt relief, including potential haircuts. They argued that Ethiopia’s economy is recovering, particularly in key sectors like coffee exports, and criticized the IMF’s analysis as flawed, claiming it artificially depicts a solvency crisis.
A delegation led by Finance Minister Ahmed Shide, who attended last week’s World Bank and IMF Spring Meetings, held constructive discussions with Eurobond holders, according to a diplomatic mission statement. Both sides agreed to maintain dialogue to ensure a smooth and timely debt restructuring process.
A memorandum of understanding with G20 creditors is expected to be signed in June, paving the way for the restructuring of over USD 8 billion in debt.