Ecuador president orders default on "immoral" foreign debt
Ecuador President Rafael Correa announced that his government would default on foreign debt that he called illegitimate, and vowed to assume "the responsibility of the consequences."
The leftist economist ordered a halt to paying 30.6 million of interest on the Global 2012 bond issue that is due December 15, reported dpa.
"We know whom we're up against, true monsters that will not hesitate to try to destroy the country and make Ecuador an example," he said. "We accept this responsibility."
A presidential commission recommended defaulting on the bond issue, which it said were illegally negotiated between former officials and US investment bankers.
Correa said government lawyers were studying legal arguments for refusing to pay the bond issues of 2012, 2015 and 2030 - a combined total of nearly 4 billion dollars, or one-third of the country's external debt.
The president said he would design a legal strategy to challenge debts that he called "immoral and traitorous to the fatherland."
He said the government would propose a debt-restructuring plan to its creditors with a few day, "to find a rapid solution that is satisfactory to Ecuador.
Correa said two of the debt issues were made without presidential authorization, and the dates had been altered on documents.