IMF drives Ecuador rally as debt swap settles

Ecuador, road, car, wing mirror, LatAm 575
By Oliver West
03 Sep 2020

An IMF agreement that surpassed all expectations triggered a rally in Ecuador’s exchange bonds after they went free to trade this week, although analysts warn that February’s presidential election represents a major event risk.

After wrapping up negotiations on the restructuring of $17.4bn of bonds in record time earlier in the month, on August 28 Ecuador announced a new $6.5bn IMF facility with a 10 year tenor, a four-year grace period, and average interest of 2.9%. 

Ecuador’s restructuring was contingent on a new ...

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