Reuters exclusively reports Ethiopia to seek debt relief under G20 debt framework

Ethiopia plans to seek a restructuring of its sovereign debt under a new G20 common framework and is looking at all the available options, the country’s finance ministry told Reuters. Ethiopia’s government bonds saw their biggest ever daily fall on the news, and analysts said restructuring concerns could spill over to hit other borrowers. G20 nations agreed in November for the first time to a common approach for restructuring government debts to help ease the strain on some developing countries driven towards the risk of default by the costs of the coronavirus pandemic. The news that Ethiopia would seek debt relief left investors wondering whether they would be left to take a hit in the event of a restructuring.