Ecuador President Announces that Ecuador will not Pay Foreign Debt Interest
President Rafael Correa said during a conference in Guayaquil Friday that he will not pay interest on the nation’s foreign debt and that he is prepared to accept any consequences reported CNN.
Correa said that he considers the debt to be illegitimate and that the international lenders are monsters. He also said that he believes some of Ecuador’s 10 billion debt was contracted illegally by the previous administration wrote the BBC.
The president said that he is studying how to challenge the debt and wants to look over the way the terms of the debt were set. He also said that he plans to set forth a restructure plan. (CNN)
Ecuador has already spent $7 billion to pay debt from the 1980s which was originally $4 billion. This is the first debt default by a country in Latin America since 2001. (BBC)