Ethiopia will likely default on a USD 33 mln interest payment due on its December 2024 USD bond. The country’s finance ministry highlighted a “fragile external position” as the reason for non-payment and reported unsuccessful discussions with bondholders. The Ethiopian government has proposed a restructuring plan to avoid capital losses, offering a lower coupon in exchange for extending the bond’s maturity and maintaining its face value at USD 1 bln. The bond has a 14-day grace period before being officially considered in default.