The Ethiopian Ministry of Finance announced today that it has reached a preliminary agreement with an ad hoc committee of bondholders on the key financial terms for restructuring Ethiopia’s $1 billion 6.625% bonds due in 2024.

Between December 23, 2025, and January 1, 2026, Ethiopia held closed-door discussions with the ad hoc committee representing institutional investors holding over 45% of the outstanding 2024 bonds.

The negotiations focused on the potential bond restructuring, supported by advisors from both sides.

The Ministry of Finance confirmed that these discussions resulted in a preliminary agreement on the core financial terms for the restructuring. Ethiopia views the agreed terms as aligned with the objectives of its program with the International Monetary Fund (IMF) and consistent with the “comparability of treatment” principle applied by the Official Creditors’ Committee (OCC).

According to the Ministry, the agreed financial terms have been shared with the Official Creditors’ Committee to obtain its non-objection and with the IMF to ensure alignment with Ethiopia’s long-term debt sustainability framework.

Ethiopia has also committed to continuing constructive and good-faith work with the ad hoc committee to finalize the non-financial terms of the new instruments to be issued as part of the restructuring process. This preliminary agreement remains subject to completing these discussions and receiving final confirmations from both the IMF and the Official Creditors’ Committee.

The government affirmed its intention to move swiftly towards implementing the restructuring through an exchange offer and/or solicitation of consents, aiming for execution as early as possible in 2026.

Ethiopian Ministry of Finance

The Ethiopian Ministry of Finance is a key government institution responsible for formulating and implementing the country’s fiscal and economic policies. Historically, its modern structure evolved significantly in the post-World War II era, particularly during the imperial period under Emperor Haile Selassie, who centralized economic planning. Today, it plays a central role in managing national budgets, public debt, and international economic cooperation to drive Ethiopia’s development.

International Monetary Fund (IMF)

The International Monetary Fund (IMF) is an international financial institution established in 1944 at the Bretton Woods Conference to foster global monetary cooperation and financial stability. Its primary roles are to provide policy advice, financial assistance to countries in economic difficulty, and promote sustainable economic growth. Headquartered in Washington, D.C., it is governed by and accountable to its 190 member countries.

Official Creditors’ Committee (OCC)

The Official Creditors’ Committee (OCC) is not a physical place or cultural site, but a key group within sovereign debt restructuring processes. It is an ad-hoc committee, typically formed during financial crises, that represents major creditor countries (often through the “Paris Club”) in negotiations with a debtor nation to restructure its official bilateral debt. Its history is tied to post-WWII debt issues, with its modern role evolving through sovereign debt crises in Latin America, Africa, and elsewhere to provide coordinated relief and sustainable solutions.