Ecuador Defaults on $3.8bn in Sovereign Debt

Ecuador Defaults on $3.8bn in Sovereign Debt

Corporate & Sovereign Strategy

President Correa of Ecuador says he will not pay a $30.6m coupon on the sovereign’s 2012 bonds that is due today, putting the country in technical default of all of its sovereign debt. The move will allow holders of the 2012 notes to seek an acceleration of full payment of the $510m in bonds, and triggers cross default clauses on its 2015 and 2030 notes, which brings the total amount of sovereign debt in technical default to $3.8bn. The announcement coincided with a 10 point drop in the country’

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