Ecuador Defaults on Soveriegn Bonds, Calling Bondholders Monsters

Ecuador Defaults on Soveriegn Bonds, Calling Bondholders Monsters

Ecuador became the first nation to default on sovereign debt since the meltdown began.

Rafael Correa, Ecuador's Chavez-loving, has decided to default on a $30 million interest payment on $500 million in sovereign bonds, despite cash reserves of $5.6 billion.  While bondholders have recourse, this is a very troubling decision by a US educated President in a country that is entirely dollarized, especially as Correa seems to have lined up funding from Cuba, Bolivia, Venezuela and Iran.

I thought that this was a very good article on this matter in the Financial Times.

Your code to embed this article on your website* :

*You are allowed to change only styles on the code of this iframe.

Comments

Add your Comment