Ethiopia signs debt restructuring deal with France

NAIROBI, Feb 12 (Reuters) - Ethiopia signed its first bilateral debt restructuring agreement with France, state-run Ethiopian News Agency reported late on Wednesday, a key step forward with official lenders even as its Eurobond holders plan legal action over delays in securing a deal.

The country defaulted on its external debt in December 2023.

• The France-Ethiopia deal is the first since the African country signed a collective restructuring agreement with official creditors last July under the G20's Common Framework initiative.

• France will also provide additional financing of 81.5 million euros to support economic reforms and provide technical assistance, the news agency reported.

• Ethiopia's agreement with the official creditors committee, chaired by China and France, would provide cash flow relief of $3.5 billion.

• The agreement with France comes after official creditors blocked an initial draft deal to restructure Ethiopia's $1 billion Eurobond.

• Official creditors said the draft bondholder deal did not meet the Comparability of Treatment principle under the G20 Common Framework.