As Ethiopia struggles through a crippling economic crisis, a new threat is emerging far from its border – in UK court rooms. Vulture funds have announced plans to sue the country, even as it tries to negotiate debt relief. Since 2021, Ethiopia has been working with lenders under a G20-backed scheme intended to ease the burden on countries in distress.
But private lenders, led by VR Capital and Farallon Capital Management, have refused to accept the same terms agreed in 2025 by governments including France and China. Instead, they’ve pushed for bigger payouts – and have now turned to legal action in the UK after their demands were blocked.
