Costly Goldman Lifeline Forces Ecuador to Scrap Bank Loans Early
- Nation turned to Goldman and Credit Suisse for loans in 2018
- Ecuador reached an accord with bondholders to delay payments
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Ecuador repaid loans early from Wall Street firms including Goldman Sachs Group Inc. and Credit Suisse Group AG after a selloff in the nation’s bonds triggered extra payments to the banks.
The Finance Ministry closed out the deals totaling about $1 billion last month, according to an internal report seen by Bloomberg. The four-year loans, dating from 2018, seemed like a cost-saving move as the two banks offered cheaper terms than the distressed rates found in the bond market.