Bloomberg: Ethiopia Will Approach Private Creditors Only as Last Resort

Yields on the Horn of African country’s $1 billion of Eurobonds due in December 2024 fell for the first time in four days, sending prices higher. Rates dropped 65 basis points to 8.49% by 12:47 p.m. in London. Yields on the notes soared to nine-month highs after the government’s announcement on Jan. 29 that it wants to restructure external debt under a Group of 20 program.

While the Finance Ministry said earlier this month it may seek talks with private lenders such as bondholders or commercial banks after negotiations with government and public-sector agencies are completed, many investors have continued to offload the securities amid the uncertainty of the potential outcome.