Saturday, December 13, 2008


Ecuador defaults on foreign debt

Some Presidents actually do keep their campaign promises:
Ecuador's President Rafael Correa said yesterday that his nation is defaulting on its foreign debt, fulfilling his longtime populist pledge to leave international creditors in the lurch.

"We are ready to accept the consequences," Correa said, according to a transcript of his comments. He described the debt as "immoral," saying the government would take its findings that past debt sales were tainted by graft and bribes to international courts.

It is exceedingly rare in global finance for a nation not to honor its debt because it doesn't want to, as opposed to not being able to make payments because of a financial crunch. Some analysts fear it may set a precedent, emboldening other leaders who share Correa's ideology -- such as Venezuela's Hugo Chávez -- to make similar pronouncements.

Why stop here? There's more...

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