Ethiopia to renegotiate Eurobond deal after official creditors reject terms

Ethiopia will resume talks with bondholders after official creditors rejected a recent debt deal. The government aims to meet comparability requirements.

Ethiopia ETET must reopen negotiations with holders of its 2024 Eurobond (US$1 billion) after the Official Creditor Committee (OCC) informed the government on January 30, 2026, that a draft restructuring deal did not fully meet the G20 Common Framework’s Comparability of Treatment requirement. This assessment by the Official Creditor Committee (OCC) has halted the implementation of a proposed exchange that was previously announced on January 2. The decision forces the Ethiopian finance ministry to resume talks with the Ad Hoc Bondholder Committee, delaying the finalization of restructuring terms for the debt.
The Comparability of Treatment principle is a structural requirement of the G20 Common Framework, ensuring that commercial creditors are treated in a manner consistent with the relief provided by official bilateral creditors. The Official Creditor Committee (OCC), which includes members of the Paris Club, determined that the proposed terms for the 2024 Eurobond (US$1 billion) did not align with these standards. This requirement is central to the G20 Common Framework process, which Ethiopia ETET joined to manage its sovereign obligations following a default on the bond in late 2023. Investors in the United States USUS and other regions are closely monitoring the outcome.
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