Ethiopia

Ethiopia plans to restructure an additional $1 billion of debt as the government seeks to free up funds to support its economic recovery, Bloomberg News reported. Restructuring of the debt will provide a grace period of as long as six years and extend the maturity by 10 years, the Finance Ministry said in a report on its website. “$2.5 billion in principal and interest payment has been postponed for five years by commercial creditors under the first external debt restructuring scheme,” according to the report.
Read more
A group of creditors that bought Etihad Airways PJSC-linked bonds are preparing to auction $463 million of claims against insolvent airlines Alitalia and Air Berlin to recover some of their investment, Bloomberg News reported. The trustee of bonds issued by EA Partners I and II -- two special purpose entities set up by the Abu Dhabi-based carrier -- hired Barclays Bank Plc to arrange the sale, according to a statement. Potential buyers will be able to access documentation on June 21 and the auction will take place within two weeks, it said.
Read more

Investors in Ethiopia’s Eurobonds are losing out on the rally in emerging-market debt. The country’s 2024 dollar securities dropped for a fourth day on Monday as conflict in the northern Tigray region continued, Bloomberg News reported. Clashes between government soldiers and fighters loyal to the region’s ruling party stoked fears of a broader civil war at a time when the government is struggling to end ethnic violence shaking Africa’s second-most populous country.

Read more

South Africa should act to preserve its insolvent national airline and seek to partner the carrier with Ethiopian Airlines Group, according to a study commissioned for ruling-party lawmakers, Bloomberg News reported. The assessment, seen by Bloomberg, was prepared by African Aviation Services Ltd. and dated Oct. 4. It was presented to a group of African National Congress lawmakers on Monday, according to an ANC official who asked not to be identified because the information isn’t public.

Read more

Ethiopian Airlines Group is willing to provide planes, pilots and maintenance services to beleaguered rival South African Airways as part of a joint venture with that country’s government, Bloomberg News reported. Africa’s biggest airline is offering operational assistance, Ethiopian Chief Executive Officer Tewolde GebreMariam said in an interview in Addis Ababa. The carrier isn’t interested in helping with debt repayments or the cost of reducing the workforce, he said.

Read more

Ethiopian Airlines is in talks over possible involvement in the rescue of flagship carrier South African Airways (SAA), the head of the airline told Reuters on Friday, Reuters reported. SAA hasn’t made a profit since 2011 and has been under a form of bankruptcy protection since late last year. Creditors have approved a restructuring plan, but the government needs to find at least 10 billion rand ($580 million) of funding for it to work.

Read more

Ethiopian Airlines Group is among companies in talks with South Africa’s government about potentially offering support to the country’s insolvent state airline, according to people familiar with the matter, Bloomberg News reported. Africa’s biggest carrier is considering ways to help bankrupt South African Airways fly again after more than five months of dormancy, said the people, who asked not to be identified as the talks are private. Taking a stake in the carrier is one of the options under discussion, they said, though negotiations are ongoing and an agreement may not be reached.

Read more

Moody’s has clashed with the UN after putting five countries on review for a downgrade in recent weeks, saying that a G20-backed debt suspension scheme poses risks to private creditors, the Financial Times reported. The rating agency took action against Ethiopia, Pakistan, Cameroon, Senegal and the Ivory Coast, after the countries opted into a G20-backed initiative that allows them to freeze official bilateral debt repayments due this year to member nations and members of the Paris Club, a group representing major credit countries.

Read more
China has agreed to restructure some of Ethiopia’s debt, including a loan for a $4 billion railway linking its capital Addis Ababa with neighbouring Djibouti, Ethiopia’s Prime Minister Abiy Ahmed said on Thursday. Abiy described the rescheduling as limited, but added that repayment of the railway debt has been extended by 20 years, Reuters reported. Landlocked Ethiopia and the Red Sea state inaugurated the railway in January, with 70 percent of the total cost covered through a loan from the Export-Import Bank of China (EXIM).
Read more