Ethiopia joined Ghana and Zambia as Africa’s latest defaulter after it failed to make interest payment of $33 million on its $1 billion bond following the expiration of a grace period on Monday. The nation, located in the Horn of Africa, was obligated to pay a $33 million coupon on Dec. 11. Ethiopia had previously reached an agreement with bilateral creditors last month to suspend debt payments. However, the face value is set to remain at $1 billion, ensuring that creditors will not be required to accept a so-called haircut on their holdings. The report further stated that around 60% of low-income countries are either at risk of debt distress or likely already experiencing debt distress.

Source: Ethiopian News December 26, 2023 09:27 UTC