Ecuador Default Odds Surge as Virus Prompts Calls for Moratorium
- Congress calls on government to halt debt payments amid crisis
- Government should focus on coronavirus measures, lawmakers say
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Ecuador’s Congress called on the government to suspend debt payments to free up cash to deal with the coronavirus pandemic, prompting JPMorgan Chase & Co. to warn of a potential default as soon as Tuesday.
The South American nation’s $3 billion of bonds due in 2028 fell 3.5 cents to a record low 31 cents on the dollar, pushing yields to 33%. Ecuador has about $320 million of debt due tomorrow and coupon payments later this week.