Ethiopia Heads for Default, in Sign of Renewed Debt Stresses on Poor Nations

The developing world’s financial woes are deepening again, with Ethiopia on track to become the latest country to default on its foreign debts. Ethiopia would join countries such as Zambia, Sri Lanka and Ghana that have defaulted on overseas bonds in recent years—and found themselves in a lengthy, fractured process for securing debt relief. Ethiopia is expected to miss a coupon payment due Monday on its $1 billion international bond after bondholders rejected proposals to extend the repayment period and lower the interest rate.