Ecuador debt default

”I gave the order not to pay the interest and to go into default,” Mr Correa told reporters in Guayaquil. ”We know very well who we are up against — real monsters.”

Ecuador declared default on its 2012 global bonds on Friday over charges the debt was illegally contracted by past governments, leaving investors to deal with its second debt default in less than a decade.

President Rafael Correa’s decision to not pay a $31 million coupon on the government’s 2012 bonds means the country’s two other global bond issues due in 2015 and 2030 are also considered in default, according to cross-default clauses in the contracts.

Possible scenarios after Ecuador debt default

Ecuador defaults on sovereign bonds