Bailout Risk Grows for Ecuador After Worst Earthquake in Decades

  • Magnitude 7.8 earthquake killed 433, injured 4,027 on Saturday
  • Worsening recession seen hobbling government reconstruction

Before a 7.8-magnitude earthquake struck Ecuador on Saturday, the South American nation’s finances were already in tatters as the government struggled to meet payments to municipal authorities, oil companies and even cancer hospitals. Cut off from global bond markets, President Rafael Correa must now find enough money to rehouse thousands.

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