Ethiopia’s Debt Restructuring Hits Roadblock

• Ethiopia’s proposal for a 20% debt reduction rejected by international bondholders, stalling economic recovery efforts
• Economists warn of rising borrowing costs, inflation, and threats to development goals amid stalled negotiations

Addis Ababa, Ethiopia – Ethiopia’s efforts to restructure its debt have encountered a significant hurdle, with international bondholders rejecting the government’s proposal to reduce its debt burden by 20%. This setback poses a serious challenge to the country’s attempts to stabilise its economy and mitigate the risks of a growing debt trap.