Skip to main content

Ecuador May Announce Bond Payment Decision Tomorrow

By Nathan Gill and Lester Pimentel
Feb. 12 (Bloomberg) -- Ecuador may announce tomorrow whether it will make an interest payment on its bonds due Feb. 15, Finance Minister Maria Elsa Viteri said.

Viteri, speaking at a press conference today in Quito, said the announcement may come tomorrow or Feb. 15. Ecuador has a $134 million interest payment due on its $2.69 billion of 10 percent notes maturing in 2030, according to Royal Bank of Scotland.

“I am working all day with the debt assessors, the financial and legal advisers to give the corresponding statements and working on a definitive solution to the debt,” Viteri said. “I will make the appropriate statements at the right time. Everything depends on the latest decisions that we take between today and tomorrow.”

Should Ecuador fail to make the payment, it would be the second time the country defaults on foreign debt in the last three months. In December, President Rafael Correa skipped a $30.6 million payment for the country’s 12 percent bonds due in 2012. Correa has said those securities, along with its 10 percent bonds, are “illegal” and “illegitimate.”

The yield on Ecuador’s notes due in 2030 was unchanged at 29.32 percent at 2:34 p.m. in New York, according to JPMorgan Chase & Co. The bond’s price held at 30 cents on the dollar.

Last month, Ecuador decided to honor its 9.375 percent bond due in 2015 after invoking a 30-day grace. The government views that bond’s legality differently than that of its notes due 2012 and 2030, Viteri said last month.


Popular posts from this blog

Moving to the Suburbs: Reducciones in Recent Latin American Historiography

In 1503, the Spanish monarchy issued its first decree for the resettlement of indigenous groups in the Caribbean so that they would “live together” and “not remain or wander separated from each other in the backcountry.”[1]

As the European conquest spread to North, Central, and South America, these new settlements – known as reducciones and congregaciones in Spanish and descimentos in Portuguese – became sites of forced labor, evangelism, experimental agricultural, and refuge. Through a series of imperial policies decreed over the next decades and centuries of colonial rule, Spanish and Portuguese officials attempted to reshape the New World, including its human and natural landscapes. How colonial historians explain this process and indigenous peoples’ reactions to it is the focus of this essay.

In a review of the recent historiography of reducciones, several trends emerge that signal a shift in our understanding of the practice. As this paper will show, one common element is that …

"Open" and "Closed" Regionalism Theories

(Apr. 3, 2008) The terms "Open" and "closed" regionalism refer to the degree in which regional blocks allow nonmember nations to access their markets. In this sense, an "open region" is one with few, if any, external trade restrictions while a "closed region" can be defined as one whose external trade policies seek to restrict commerce with nations outside the region.Closed regionalism as practiced in Latin America grew out of the policy suggestions made by UN ECLAC/CEPAL school of dependency theory in the early 1960s. As discussed earlier, proponents of this policy argued that states should form regional alliances with a series of trade barriers against foreign products to foment regional industrialization and assure captive local markets for these manufactured goods. The failure of this system of integration to meet Latin America's economic goals became apparent during the 1980s and was further highlighted by the strong economic performanc…

Greetings From Gringolandia

Bloomberg Businessweek, March 28 — April 3, 2016
Susan Lamy and her husband, Jean Pierre, owned a successful interior design business in Westport, Conn., but they still worried about how they would make ends meet in retirement. “Just paying for the basic necessities was killing us, and we could see that there was no way that we would ever be able to stop working,” says Lamy. 
The search for an affordable retirement spot led the couple to Cuenca, a Unesco World Heritage site in Ecuador’s southern Andes. They settled there in 2013 and now live in a spacious apartment with a terrace overlooking the Yanuncay River. Lamy says she and her husband enjoy a high standard of living in Cuenca for around $2,500 a month, paid for by their Social Security checks: “This seemed to be the best possibility for having a really terrific life on a fixed income.” 
The combination of a subtropical climate, well-preserved colonial architecture, and low cost of living has made Cuenca a magnet for North Ameri…