A group of bondholders have rejected the latest debt restructuring offer from the Ethiopian government and reaffirmed they are suing the East African country in the UK High Court.
Reacting to the news, Heidi Chow, Executive Director of Debt Justice, said:
“Bondholders are acting outrageously by demanding far more than other creditors, while seeking to tear up the international debt relief scheme in the process. The UK government must urgently make legal changes so creditors cannot sue during debt relief negotiations. Unless it acts, the UK will be complicit in the destruction of the G20 debt relief process the year before it holds the G20 presidency.”
Under the proposal from the Ethiopian government, bondholders would have been repaid the equivalent of 86 cents for every $1 lent. This is still more than the 83 cents government creditors such as China and France are receiving.
The Ethiopian government proposal would also have meant bondholders would still have made 28% more profit than if they had lent to the US government.
All calculations are available at: https://debtjustice.org.uk/wp-content/uploads/2026/06/Ethiopia-calculations_06.26.xlsx