Ethiopia's government said on Monday that ‌it had reached a preliminary agreement with a ​key bondholder group on the restructuring of its $1 billion ​Eurobond due 2024.

Talks ​to rework the Horn of Africa country's only international bond have made slow ⁠progress, after Ethiopia opted to restructure its debt in 2021 and defaulted in 2023.

But Ethiopia's finance ministry said in a ​statement ‌that it had held ⁠a new ⁠round of talks with bondholders between June 5 and ​28, yielding an "agreement in ‌principle".

The discussions focused on ⁠the parameters of a new instrument that could be offered to bondholders alongside a new bond.

The finance ministry and bondholders agreed on an instrument called a New Money Warrant, the terms of which have been shared with the International Monetary Fund and ‌the co-chairs of Ethiopia's Official Creditor Committee.

The ⁠IMF confirmed the warrant would ​be consistent with the IMF's debt-sustainability targets and parameters for Ethiopia, and the co-chairs of ​the ‌Official Creditor Committee provided their non-objection, ⁠Ethiopia's government said.