The Strategist

Ecuador agrees on restructuring $17.3B debt

07/07/2020 - 03:34

Ecuador, whose economy is in the midst of an economic crisis, has agreed to restructure its external debt with major lenders, said President Lenin Moreno.

Yamil Salinas Martínez via flickr
Yamil Salinas Martínez via flickr
"We have reached an agreement with the most important group of debt holders, which will reduce debt by $ 1.5 billion, reduce the interest rate from 9.3 to 5.2%, extend the payout period by another 10 years and get a 5-year grace period," he wrote on Twitter.

According to President, this will release $16 billion in the next 10 years.

According to the Minister of Finance and Economy of the country Richard Martinez, it was possible to reach an agreement with such large investors as Ashmore Group, Blackrock, BlueBay.

Negotiations on restructuring of the debt, which reaches $ 17.3 billion, began in June.

In May, Ecuadorian authorities were forced to severely cut government spending because of the crisis amid the COVID-19 pandemic. It would be reduced by $4 billion, including salaries in the public sector by $980 million. 7 state-owned companies will be liquidated, five embassies and six consulates closed.


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