Ecuador says plan to renegotiate debt imminent

Ecuador finance minister says government will announce plan to renegotiate debt next week

Staff
AP News

Jan 09, 2009 16:32 EST

Finance Minister Maria Elsa Viteri says Ecuador will announce its plan to renegotiate nearly 40 percent of its $10 billion in foreign debt before the end of next week.

Ecuador partly defaulted on its foreign debt in December after a public audit called three sets of bonds illegitimate.

Officials have said part of the plan to renegotiate the debt could include buying back the bonds at a discount of at least 70 percent.

Viteri says Ecuador will not act irresponsibly and will only opt to push for a buyback if it can cover the cost.

She says another option would be to restructure the bonds or swap them for other debt instruments.

Viteri said in a news conference Friday that she "has until the 14th" of January to finish work on the plan.

Source: AP News