Investors holding Ethiopia’s defaulted $1 billion bond have contested the International Monetary Fund’s (IMF) evaluation of the country’s debt relief needs. They argue that the IMF has underestimated the positive impact of increased gold and coffee exports on Ethiopia’s financial recovery. The bondholder committee, which owns 40% of the debt, claims that the IMF’s projections suggest a greater necessity for debt concessions than what is actually required for debt sustainability. This disagreement highlights the challenges in aligning the IMF’s assessments with the financial realities of debtor nations.
Source: FT
