NEW YORK (Reuters) – A bunch of overseas holders of Ethiopia’s worldwide bond stated on Wednesday it’s disillusioned with latest feedback from the federal government concerning a potential 20% principal haircut on its $1 billion bond.
“The Committee doesn’t view any such haircut as being in line with its analysis of Ethiopia’s financial fundamentals,” the group stated through e-mail, calling the federal government’s latest public statements “incompatible with a good-faith method to debt restructuring.”
Ethiopia defaulted on its sole $1 billion worldwide bond in December, however has made little headway in its restructuring since then.
The federal government took bondholders unexpectedly when it introduced earlier this month that it aimed to cut back the principal of the bond to $800 million, which might point out a 20% haircut, citing the necessity to match debt aid provided by official collectors.