Ecuador To Buy Back Outstanding 2012s

Ecuador is to buy back its outstanding 2012 bonds by January, ahead of the new government assuming power. There are currently $510 million of the 2012 bonds, the sovereign’s most expensive debt, in circulation. Last month the government bought back $740 million of the 12% bonds to save an estimated $20 million a year in debt payments. Ecuador is likely to tap the international bond market later this year; the government has been authorized to issue up to $900 million of new debt.