NEW YORK (Reuters) – A gaggle of international holders of Ethiopia’s worldwide bond stated on Wednesday it’s dissatisfied with current feedback from the federal government concerning a attainable 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 by way of electronic mail, calling the federal government’s current 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 abruptly when it introduced earlier this month that it aimed to scale back the principal of the bond to $800 million, which might point out a 20% haircut, citing the necessity to match debt reduction supplied by official collectors.