Ecuadorean President Rafael Correa said he wants bondholders to accept a "very big" discount in debt renegotiations triggered by the South American country's second default in a decade, Bloomberg reported.
Correa, speaking in his regular Saturday radio-and- television broadcast, said he wants bondholders who had bought the debt in good faith to recoup some of their investment, while repeating his belief that most of the $3.9 billion owed is "illegal."
"We're preparing a restructuring plan with a very big discount because there is a legitimate part to the debt," he said. "We want to present a proposal where some value of the debt is recognized but at a much lower price than what they say we owe."
Correa, a 45-year-old economist, yesterday refused to give the order to make a $30.6 million interest payment due Dec. 15, when a monthlong grace period expired. The $510 million bonds due in 2012 plunged to 23 cents on the dollar from 31 cents the previous session and 97.5 cents three months ago.
"I really couldn't give the authorization to pay the interest on those debts," Correa said. "We know that this could bring us grave consequences and I personally assume full responsibility in case this costs the country too much."