(Bloomberg) -- Ethiopia’s sole eurobond is close to erasing gains made since a peace process started to end its catastrophic civil war, as investors increase bets that the Horn of Africa nation will default. A prospective end to that two-year conflict had revived hopes that Ethiopia could return to form as one of Africa’s best growth prospects. Ethiopia has about $28 billion of external debt and has said it would need $20 billion for post-war reconstruction. Moody’s Investors Service last month downgraded Ethiopia’s credit rating to Caa3, warning of the “increasingly high likelihood of default” on its foreign currency private-sector debt. The conflict left hundreds of thousands dead and forced millions more to flee, according to US and European Union estimates.

Source: Ethiopian News October 06, 2023 08:41 UTC