Ecuador Sees Oil as Key on Deciding Debt Default

Ecuador sees falling oil prices as a determining factor in its decision on whether to service foreign debt that the leftist government deems "illegal," Minister of Politics Ricardo Patino told Reuters on Monday. Patino, one of President Rafael Correa's closet allies, said a restructuring of the country's Global bonds was less likely now as the government plans to decide on whether it will keep servicing or default on the debt this week. The leftist economist, who was a key advisor on determining the legality of the country's $10 billion of foreign debt, said Ecuador has taken measures to withstand any lawsuits that may arise from a potential default. Patino reiterated his government plans to annul the country's Global bonds, but left open the possibility of continuing paying an overdue $31 million coupon by its deadline on Dec. 15. Read more.