Suppose it is about time someone defaultd. President Rafael Correa made his country the first Soveriegn in the current credit crisis to announced that the government will not make payments on some of its bonds. Specifically, the $30 million coupon on the 2012 bonds. The 2012, 2015 and 2030 bonds, with a nominal of $3.86 billion, will alos default.
The Equadorian government will present a debt restructuring proposal which we expect will result in a substantial haircut for investors!!! The government is likely to have a fight on its hands as the country is not short of funds to pay the interest...
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