Ecuador reached a major milestone on Monday by reaching a debt restructuring agreement with a major portion of its bondholders, finance minister Richard Martinez said in a press conference on Monday, highlighting a cut in its debt payments and an extension of the maturities on its foreign obligations.
“The negotiation process was intense and we have tried at all times to protect the interests of Ecuadorians,” Martinez said. “It alleviates the weight of the debt in the years to come so that our country can have more resources for economic reactivation and social programs for the most vulnerable.”
A total of $17.4 billion in debt is being renegotiated. The ad-hoc group that reached an agreement with Ecuador is composed of Ashmore Investment Management, AllianceBernstein, Blackrock, Bluebay Asset Management and Wellington Management Co. This group holds almost half the country’s notes.
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