18:09 GMT14 April 2021
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    Ecuadorian President Lenin Moreno has said on Twitter that the country has received the necessary majority to renegotiate the bonds of Ecuador’s foreign debt.

    Ecuador has secured the backing of most of its bondholders to renegotiate about $17.4 billion in debt, President Lenin Moreno said on 3 August. This is a key step for the country, which is facing severe liquidity problems due to the coronavirus pandemic.

    The president added that thanks to this process, resources will be freed up for social protection and the economic reactivation of the country.

    The Latin American country has proposed a renegotiation process to the holders that includes a reduction of some 1,540 million dollars in the principal of the debt, an extension of the maturity of the papers, and lower interest rates.

    The statement comes after Moreno said that Ecuador and the International Monetary Fund (IMF) could reach a new agreement on financial aid for the Latin American nation.

    In May, the IMF satisfied Ecuador's request for $643 million in urgent aid, which was made after the economic crisis hit the Latin American nation.

    The coronavirus-linked crisis has already made the Ecuadorian government reduce public expenditure by $4 billion.

    Tags:
    Lenin Moreno, foreign debt, Ecuador
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