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BondsMedium•29 June 2026•

1 min read

Ethiopia Reaches Deal to Cut Payments on $1 Billion Bond

Key Facts

1Ethiopia has reached an agreement with bondholders to cut payments on its $1 billion bond.

2This agreement follows $8 billion in debt relief from official creditors in recent years.

In a move reflecting the path of sovereign debt restructuring in Africa, Ethiopia has reached an agreement with holders of its $1 billion international bond to reduce payments. This deal follows $8 billion in debt relief from official creditors in recent years, according to a Financial Times report.

The agreement marks tangible progress in Ethiopia's efforts to address its financial crisis, especially after it stopped servicing external debt in December 2023. This step is part of a broader restructuring process that also involves the Paris Club and Chinese creditors, enhancing the country's chances of restoring financial stability.

Investors are closely monitoring Ethiopia's developments, as the deal could set a precedent for other African nations facing similar debt distress. With market close on June 29, 2026, no spot prices for Ethiopian bonds are available in the data, but the developments are expected to impact sentiment toward African sovereign debt.