Ethiopia caught its bondholders off-guard with a proposal to introduce a 20% haircut in the nation’s debt-restructuring process, setting the scene for tense negotiations, Bloomberg News reported. The government’s suggestion to reduce the value of $1 billion eurobonds due in December contrasts with proposals creditors exchanged with Ethiopia last year, which would have seen them receive the principal in full, but over a longer period and at lower interest rates, according to Kevin Daly, emerging markets investment director at Abrdn Investment Management Ltd.
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