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Economy / Ecuador

Debt Default: The Day Of Reckoning

April 2009 | Economic Analysis

BMI View: Ahead of general elections on April 26, the Ecuadorean government has announced its intentions to buy back its default debt at 30% of the face value. While there are now number of options that the bondholders can take, we believe there is little to prevent a ballooning of the fiscal deficit and collapse in economic growth in 2009 and 2010.

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