Ecuador has reached a provisional restructuring deal with the holders of about half of its sovereign bonds, which, if formally approved, would give the country crucial breathing space as it tries to sort out its finances and deal with coronavirus.
The announcement comes as Argentina seeks a similar, although much larger, deal with its bondholders under more challenging conditions.
It also comes as Ecuador discusses further financing with the IMF and Chinese banks. The IMF welcomed Monday’s announcement, and the government in Quito said it hoped it could clinch a deal with the fund by mid-August.
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