Bondholders have reached a debt restructuring deal with the Ethiopian government that could see them paid 28% more than government creditors. The deal comes after some bondholders, including VR Capital and Farallon Capital Management, threatened to sue Ethiopia in the UK.
Debt Justice has calculated that the deal means bondholders could be paid 105.9% of what they originally lent, in net present value terms. In contrast, government creditors are being repaid 82.7% of what they originally lent.[1]
Tim Jones, Policy Director at Debt Justice said:
“Bondholders have used the threat of suing in the UK to push Ethiopia into this bad deal. Official creditors should reject it and instead demand a better deal for the Ethiopian…