Posted On 11 Jan 2017
Finance Minister Patricio Rivera reported that yesterday Ecuador issued $ 1 billion of sovereign bonds in the international market, with a performance of 9.125% and a term due on December 13, 2026.
According to the Ministry, the negotiation process for this issue was successfully developed because it attracted more than $ 2.2 billion in demand for Ecuadorian bonds.
This is the first placement of bonds this year, after last December, when $ 750 million in bonds were also placed at ten years, and at a higher rate of 9.65%.
On the subject, Jaime Carrera, executive director of the Observatory of Fiscal Policy, explained that this issue is the price of having an irresponsible policy of spending, without limits. He indicated that this new placement would mean the payment of $ 90 million more in interests per year. This figure is in addition to the $ 600 million already being paid from interest on bonds issued earlier.