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LatinNews Daily - 11 June 2019

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In brief: Ecuador

* Ecuador’s economy & finance ministry has announced that it will launch an offer to buy back its 2020 bond in a liability management operation that will be financed with the issuance of a new bond maturing in 2029. In a press release, Economy & Finance Minister Richard Martínez hailed the move as unprecedented, adding that Ecuador’s capacity to launch this operation on the capital market is “good news” and a “sign of the confidence that the world currently has in Ecuador and in the government’s economic policy”. Martínez also pointed out that without this operation, which was organised with the help of Citigroup, Deutsche Bank, and JP Morgan, Ecuador would have to pay the US$1.5bn bill for the bonds that were due to mature in March 2020. According to the statement the operation may also reduce the average cost of the 2029 bonds and, ultimately, the debt owing on them.