Local Economy to Bear Brunt of Default

Local Economy to Bear Brunt of Default

Corporate & Sovereign Strategy

Ecuador’s economy will be the chief victim of its government’s decision to default on $3.8bn in sovereign debt, say analysts. “International banks will starting to close off lines to local banks, independent of how good they may be,” notes Ramiro Crespo, a partner at Quito-based Analytica Securities. “The logical thing to do would be to pay the coupon and then sit down to talk,” he adds. The longer term implications of the debt moratorium will also be substantial. “The default decision coupled w

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