Ethiopia has reached a deal with its official creditors to restructure USD 8.4 bln of international debt, reducing debt service by USD 2.5 bln through 2028. This agreement paves the way for a deal with private creditors, including those holding the USD 1 bln Eurobond that Ethiopia defaulted on. The restructuring will allow Ethiopia to allocate more funds to critical public investments, boosting optimism among bondholders, especially with the defaulted dollar bond rallying for seven consecutive months.