Ecuador has threatened to default on up to $4bn of public foreign debt by Christmas - a step which could trigger capital withdrawal from Latin America and also bring Argentina to the brink of default, says Luis Carlos Niño of Capital Economics.
Ecuador’s president must decide by December 15 whether to default on $30m of external debt interest payments. Mr Niño says a default would raise the risk that the government might also default on up to 40 per cent of the $10bn of public external debt negotiated by previous administrations.
