Ecuador has secured the backing of most of its bondholders to renegotiate about $17.4 billion in debt, President Lenin Moreno said on 3 August. This is a key step for the country, which is facing severe liquidity problems due to the coronavirus pandemic.
The president added that thanks to this process, resources will be freed up for social protection and the economic reactivation of the country.
¡GRAN NOTICIA para #Ecuador!
— Lenín Moreno (@Lenin) August 3, 2020
Alcanzamos la mayoría necesaria para renegociar los bonos de nuestra deuda externa.
Con esto, liberamos recursos para la protección social y reactivación económica.@RichardM_A dará detalles en las próximas horas. #JuntosEcuador#NegociaciónDeuda
The Latin American country has proposed a renegotiation process to the holders that includes a reduction of some 1,540 million dollars in the principal of the debt, an extension of the maturity of the papers, and lower interest rates.
📌𝐍𝐨𝐭𝐚 𝐝𝐞 𝐩𝐫𝐞𝐧𝐬𝐚 📰| Ecuador logra mayoría necesaria, en la votación de reestructuración de la deuda con tenedores de bonos.
— Economía Finanzas Ec (@FinanzasEc) August 3, 2020
Logros:
✅ Alivio de flujo.
✅ Reducción del capital.
✅ Años de gracia.
✅ Reducción de interés.
✅ Mayor plazo.#NegociaciónDeuda pic.twitter.com/Y5RJANU9Td
The statement comes after Moreno said that Ecuador and the International Monetary Fund (IMF) could reach a new agreement on financial aid for the Latin American nation.
In May, the IMF satisfied Ecuador's request for $643 million in urgent aid, which was made after the economic crisis hit the Latin American nation.
The coronavirus-linked crisis has already made the Ecuadorian government reduce public expenditure by $4 billion.
