Ecuador Debt Rises as Government to Repay Second Bond Ever
- Goldman, Citigroup see government trying to avoid default
- Amherst Pierpont says use of grace period limits relief rally
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Ecuador bonds rose after the nation said it will make a $325 million debt payment on Tuesday, only the second time it has fully repaid a bond since independence from Spain two centuries ago.
Notes due in 2028 rose 3.8 cents to 21.5 cents on the dollar amid gains in risk assets worldwide and after Finance Minister Richard Martinez said late Monday the government will pay bonds maturing today. He also said the nation will put on hold close to $200 million of interest payments, using grace periods to spend the money instead on the health and economic impact of the coronavirus outbreak.