Buyback Deadline For Ecuador

Ecuador was due to buy back $740 million worth of its $1.25 billion 2012 global bonds, yesterday, Monday. A $400 million loan from the Latin American Reserve Fund and another $340 million from the December sale of 10-year bonds were to be used to finance the operation. Finance Minister Diego Borja expects the buyback of its highest-yielding 12% to save $20 million a year in debt payments. The country is thought likely to tap the international bond market following the buyback to raise further capital ahead of the November call date to retire the rest of the 2012 bonds. It has been authorized to issue up to $900 million.