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Ecuador to Pay Half of Bond Payment

September 27, 1999|Bloomberg News

President Jamil Mahuad said Ecuador will pay about half the interest due on $98 million in Brady bond payments due Tuesday. Mahuad, speaking during a nationwide television address, said the country won't pay interest on bonds that are backed by U.S. Treasuries. The decision means Ecuador will pay interest on its interest-due bonds and won't pay on the country's discount bonds. Economy Minister Guillermo Lasso, who was appointed to the new position about a month ago, resigned over the government's decision, Mahuad said. The decision ends weeks of speculation about whether Ecuador would make the deferred payment and comes as the government seeks to restructure $5.9 billion in Brady bond debt.

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