Until December 20, the international market did not react according to the intentions of Ecuador: to reduce the country risk in order to achieve financing at lower rates.
On December 15, the day of the bonds payment deadline, the indicator that measures the degree of confidence capitalists have that a country pays its debts on time, was at 1,210 points in the case of Ecuador. This means that investors would demand 12,10 points above the interest of the American rate, a minimum to allocate their resources in Ecuador’s debt papers, but in December 20 the indicator showed 1,259 points, an even higher figure.
Ecuador, meanwhile, seems to be doing all the tasks to contract this conindicator, in such a way that if the country decides to release bonds in the foreign market, this should not be done at a high financial cost that further complicates its fiscal accounts. For example, the 2015 bonuses were paid a day before expiration, to achieve the market credit.
The pretensions on the Economic Front are issuing bonds to achieve the balance of its state budget for 2016, that was approved with a fiscal deficit of 2,500 million dollars. In fact, the state income and expenditure sheet initially required $ 6,600 million, but more than 4,000 million were obtained, according to President Rafael Correa and Finance Minister Fausto Herrera.