Negotiations between the Ethiopian Ministry of Finance and a committee of private creditors over a defaulted $1 billion dollar bond have ended without an agreement, prompting bondholders to consider legal action.

In a statement issued Tuesday, October 14, 2025 the Ministry of Finance confirmed that discussions aimed at restructuring the bond’s repayment terms had concluded unsuccessfully. Despite the ministry’s assertion that “significant progress” had been made during the multi-day talks, the creditors’ committee described the outcome as “fruitless” and indicated it was exploring “all options, including legal options.”

The negotiations took place in Paris, France, with Ethiopia represented by legal advisors White & Case LLP and financial advisors Lazard. The bondholders’ committee also participated, accompanied by its own legal and financial counsel.

The Ministry of Finance reiterated Ethiopia’s commitment to equitable treatment of all creditors throughout the process. However, the creditors’ committee expressed disappointment, stating that the talks had reached an impasse and that legal avenues were now under consideration.

According to a report from Reuters, the committee emphasized its readiness to pursue a “legal alternative” should no viable resolution emerge.