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business English News Blog for  Ecuador News Blog January Archive 

Possibility of default may trigger a run on banks

By Shannon at 01/28/07 00:17

Banking officials say that they can weather the storm that may come from the Presidents threats to default on the countries foreign debt. There hasn't been any massive outflow, but banking officials say they have the reseves to prevent the collapse of the financial system.

Original source: Bloomberg. Ecuador Banks Would Withstand Outflow, Uzcategui Says

Petroecuador looking for funding

Petroecuador is loooking for a total of $10 billion US to stabilize and improve production levels and investments including refinery developments. They hope to increase its 170,000b/d refining capacity in order to diminish reliance on imports of derivatives.

Original source: Business News Americas. Petroecuador urgently requires US$1bn, eyes refinery - Ecuador

Ecomony Ministry intends only 40% repayment

Standard and Poor's cut the countries credit rating on Jan 19th aftet the finance minister announced to investors that the country may only pay back 40% of it's foreign debt. President Rafael Correa said in his inaugural address that he considers much of the country's foreign debt to be illegtitimate and he plans to restructure the debt to free up more money for health care and education.

Original source: Bloomberg. Ecuador Credit Rating Cut by Standard & Poor's to CCC (Update5)