Ecuador audit advises default on 40% of foreign debt. Jeanneth Valdivieso, AP AR Democrat Gazette, 11-21-'08 (link unavailable) QUITO, Ecuador--A presidential commission recommended Thrusday that Ecuador default on almost 40% of its foreign debt after finding "illegalities and ilegitimacies" in the contracts. President Rafael Correa said he would seek to halt payment on those debts and hold foreign investment banks and ex-government officials responsible, but fell short of declaring a default. An audit made public Thursday advises Correa's government to default on $3.9 billion in three types of bonds issued as part of a debt restructuring in 2000. It says the negotiations lacked transparency and caused "incalculable" damage to Ecuador's economy. The report also accuses former Ecuadoran officials and investment bankds including U.S. based J.P. Morgan and Salomon Smith Barney, now part of Citigroup, of profiting from the restructuring.
QUITO, Ecuador--A presidential commission recommended Thrusday that Ecuador default on almost 40% of its foreign debt after finding "illegalities and ilegitimacies" in the contracts.
President Rafael Correa said he would seek to halt payment on those debts and hold foreign investment banks and ex-government officials responsible, but fell short of declaring a default.
An audit made public Thursday advises Correa's government to default on $3.9 billion in three types of bonds issued as part of a debt restructuring in 2000. It says the negotiations lacked transparency and caused "incalculable" damage to Ecuador's economy.
The report also accuses former Ecuadoran officials and investment bankds including U.S. based J.P. Morgan and Salomon Smith Barney, now part of Citigroup, of profiting from the restructuring.
