Financial Times – Ecuador: indebted to China
The Financial Times writes about Ecuador’s increasing reliance on China to fund its domestic spending following the country’s default on foreign debt in 2009:
When Ecuador defaulted on more than $3bn in foreign debt two years ago, soaring borrowing costs were a given. But the Opec nation’s latest $2bn loan from the China Development Bank has some wondering whether the price could end up being Ecuador’s sovereignty.
According to Quito-based Analytica Securities, the latest loan brings Ecuador’s debt to China and its corporations $6.7bn – about 11 per cent of its forecast $62bn GDP for 2011.