Ethiopia's Looming Default: Africa's Next Debt Defaulter

Ethiopia is scheduled to hold a call with its international bondholders on Thursday as it faces the possibility of defaulting on its $33 million bond coupon payment. Talks between the finance ministry and bondholders broke down last week, with disagreements over extending the maturity and spreading out repayments of its $1 billion international bond. Non-payment of the bond coupon would put Ethiopia on track to default after the grace period expires. The country, which requested a debt overhaul under the G20 Common Framework, is struggling to pay its debts due to the combined impact of the COVID-19 pandemic and a civil war. Ethiopia is also seeking a loan from the International Monetary Fund.