Correa Starts To Outline Plans

Ecuador’s president-elect, Rafael Correa, said he believes the country’s debt servicing payments need to be lower, but as yet has given no details as to how this will be achieved. Investors nervous of a full debt default by Ecuador have been selling off the country’s foreign bonds in recent days. However, not all investors believe a default is inevitable. JP Morgan in a research note Tuesday said it believed that, once in office, Correa would prove a pragmatist on the issue of foreign debt servicing and said it would be watching with interest as the first coupon payment on foreign debt comes due on February 15. Correa has confirmed that economist Ricardo Patiño will serve as his economy minister when he assumes the presidency on January 15. Also appointed are Alberto Acosta as energy minister and Carlos Pareja as president of state-run oil concern Petroecuador. Correa also said that his new government would start to renegotiate contracts with foreign oil companies from January, although he gave no details as to how royalty payments might be altered.