Ecuador asks for coupon holiday

Ecuador, Quito, Palacio de Carondelet, presidential palace, president, Lenin Moreno, LatAm, 575
By Oliver West
08 Apr 2020

Though Ecuador was already late on debt payments and bondholders were already expecting to be asked to agree to delay coupons, the cash-squeezed sovereign’s bond curve sold off sharply after the government launched a consent solicitation to that end on Thursday afternoon.

Ecuador — arguably the Latin American sovereign that is most vulnerable to lower oil prices — is asking bondholders to defer until August interest payments due on 10 different international bonds between March 27 and July 15, and to agree to a reduction in the next coupon payment ...

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