NEW YORK (Reuters) – A group of foreign holders of Ethiopia's international bond said on Wednesday it was disappointed by recent talks from the government about a possible 20% haircut on its $1 billion bond.
“The Committee does not consider this haircut to be consistent with its assessment of the fundamentals of Ethiopia's economy,” the group said in an email, calling the government's recent statements “inconsistent with an honest approach to debt restructuring.”
Ethiopia defaulted on its $1 billion international bond in December, but has been unsuccessful in its restructuring since then.
The government surprised bondholders when it announced earlier this month that it intends to reduce the principal of the bond to $800 million, which will represent a 20% haircut, citing the need to comply with the debt relief offered by official lenders.
