Ecuador reached a preliminary agreement with some of its largest bondholders to restructure $17.4 billion in outstanding debt, reducing the South American nation’s obligations significantly over the coming decade.
President Lenin Moreno’s government intends to exchange 10 existing bonds maturing between 2022 and 2030 for three new notes due in 2030, 2035 and 2040, reducing the average coupon rate to 5.3%, according to the Finance Ministry. Under the proposal, interest payments would resume at the beginning of next year, while the earliest principal would come due in January 2026. The plan still needs approval from a share of the remaining creditors.
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