Ecuador Bankruptcy: Refusing to Pay 2012, 2015, 2030 Bonds

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  • Thread starter Greg Bernhardt
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In summary, Ecuador is currently refusing to pay off their bonds from 2012, 2015, and 2030, leading to concerns about their status as a potential "banana republic." Additionally, President Correa proposed that developed countries compensate Amazonian countries for producing oxygen, arguing that it is a valuable resource that benefits the entire planet. This idea was met with criticism, with some suggesting it could lead to a CO2 exchange and others pointing out that most oxygen actually comes from the oceans.
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  • #2
I guess Correa's http://ipsnews.net/news.asp?idnews=36188" fell through...

He said that developed countries should create a fund to compensate the countries of the Amazon basin for generating oxygen. He argued that oxygen is "a priceless good," but the industrialised world should compensate the Amazonian countries because the oxygen they produce "benefits the entire planet." The compensation payments could be used to conserve the Amazon region, or to pay back creditors.
He said it was not fair to provide the world with oxygen for free, when agricultural machinery imported from rich countries is so expensive.

I feel so guilty for ... breathing!
 
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  • #3
Oh no I'm an oxygen pirate!
 
  • #4
a ponzi scam ... The perfect vehicle to employ the layed off financial wizards that got us into this mess.
A CO2 exchange.
jal
 
  • #5
did ecuador corner the market on http://en.wikipedia.org/wiki/Cyanobacteria" [Broken]?

anyhoo, i agree, it's no more silly than carbon credits.
 
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  • #6
I thought we get most of our oxygen from the oceans. :confused:
 
  • #7
6 CO2(g) + 12 H2O(l) + photons → C6H12O6(aq) + 6 O2(g) + 6 H2O(l)
We should sell Ecuador CO2!
I'll just put it on your bill...
 

1. What is the current status of Ecuador's bankruptcy situation?

Ecuador declared a partial default on its international bonds in 2008 and fully defaulted on its debt in 2009. In 2012, Ecuador announced that it would not pay its 2012 and 2030 bonds, and in 2015, it defaulted on its 2015 bonds. As of now, Ecuador is still refusing to pay these bonds, leading to ongoing legal battles and negotiations with bondholders.

2. Why did Ecuador refuse to pay these bonds?

Ecuador's president at the time, Rafael Correa, argued that the bonds were illegitimate and part of a corrupt system that benefited wealthy bondholders at the expense of the country's citizens. He also claimed that the bonds were issued under unfair and coercive circumstances, and that the country could not afford to pay them without sacrificing essential social programs.

3. How have bondholders responded to Ecuador's refusal to pay?

Bondholders have taken legal action against Ecuador in various jurisdictions, including the United States and Europe. Some have also attempted to seize assets owned by the Ecuadorian government, such as oil shipments. However, others have entered into negotiations with the country, hoping to reach a settlement and receive at least partial payment on their bonds.

4. What impact has this bankruptcy situation had on Ecuador's economy?

The default and ongoing refusal to pay have led to a decrease in foreign investment and a downgrade of Ecuador's credit rating. The country has also faced difficulty in obtaining loans and has had to rely on loans from countries like China. The government has implemented austerity measures and cut social programs to manage its finances, leading to protests and social unrest.

5. Is there a resolution in sight for Ecuador's bankruptcy situation?

As of now, there is no clear resolution in sight. Ecuador's current president, Lenin Moreno, has continued the stance of refusing to pay the bonds, but has also expressed a willingness to negotiate. Some bondholders have reached settlements with the country, but others are still pursuing legal action. The situation is complex and ongoing, and it is difficult to predict when or how it will be resolved.

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