Ecuador Bonds Rally on $4.2 Billion IMF Deal to Serial Defaulter

Ecuador’s benchmark bonds soared to a six-month high after President Lenin Moreno’s government secured a $4.2 billion loan package from the International Monetary Fund, Bloomberg News reported. The aid is intended to support the OPEC nation over the next three years as it tries to curb spending and revive sluggish growth. Including the IMF package, Ecuador is set to receive more than $10 billion in loans from multilateral lenders, Moreno said Wednesday in a televised address to the nation. “Thanks to the firm decisions I have made, we are not what today is Venezuela,” Moreno said. Moreno and Finance Minister Richard Martinez have tried to rein in spending, including a 10 percent cut to staff at state-owned oil companies Petroamazonas and Petroecuador, after the nation slid into a recession in 2016 following an oil rout. Read more