Eight Defaults and 180 Years Later, Ecuador to Repay Bondholders

By Nathan GillNovember 18, 2015 (Bloomberg) — Ecuador is poised to do something it’s never done in its more than 180-year history: repay a bond. “What’s positive is that Ecuador has a new chance to honor, for the first time, the payment of its bonds,” said Santiago Mosquera, a former Fitch Ratings analyst who is… Read More Eight Defaults and 180 Years Later, Ecuador to Repay Bondholders

Everything Is Going Wrong in Ecuador

By Nathan Gill August 24, 2015 (Bloomberg) — As emerging markets come unhinged around the world, few nations face tougher challenges than Ecuador, a dollarized oil producer in El Nino’s path, where street protests are flaring up alongside one of the planet’s most dangerous volcanoes. “Sometimes it makes you want to laugh,” said Jose Hidalgo, director… Read More Everything Is Going Wrong in Ecuador

Pope Apologizes for Church Abuse in Conquest of the Americas

By Nathan Gill July 9, 2015 (Bloomberg) — Pope Francis asked for forgiveness for crimes committed by the Catholic Church during the colonization of the Americas at a summit in Bolivia, home to one of the region’s largest indigenous populations. “I say with sorrow that the church has committed many serious sins against the indigenous… Read More Pope Apologizes for Church Abuse in Conquest of the Americas

Pope Seeks Unity in Latin America Plagued by Political Strife

By Nathan Gill (Bloomberg) — Pope Francis, the first Latin American to lead the Catholic Church, called for unity and greater respect for diversity Tuesday during a mass in Quito, where thousands camped overnight in the rain to hear the pontiff speak. “There was no shortage of conviction or strength in that cry for freedom… Read More Pope Seeks Unity in Latin America Plagued by Political Strife

Venezuela Bonds Trapped by Oil’s New Normal as Relief Rally Ends

By Nathan Gill (Bloomberg) — This year’s climb in crude prices, however slight, brought relief to Venezuelan and Ecuadorean bondholders after last year’s crash decimated the oil producers’ revenue and prompted concern they were running short of cash. Now, the pessimism is back. While New York oil futures have surged 36 percent from a six-year… Read More Venezuela Bonds Trapped by Oil’s New Normal as Relief Rally Ends

Ecuador Cocoa Forecast Cut to 230,000 Tons After Rains Hit Crops

By Nathan Gill (Bloomberg) — Ecuador, the world’s biggest grower of flavored beans used in fine chocolate, will probably lose about 15 percent of this year’s cocoa crop after heavy rains hurt farms in the Andean nation’s coastal region, the National Cocoa Exporters Association said. Anecacao, as the association is known, reduced its 2015 forecast… Read More Ecuador Cocoa Forecast Cut to 230,000 Tons After Rains Hit Crops

Correa’s Back-Track on Tax Bills Fails to Halt Ecuador Protests

By Nathan Gill (Bloomberg) — Ecuador President Rafael Correa’s attempt to defuse nationwide protests by back-tracking on two controversial tax proposals failed to prevent opposition supporters marching for a ninth straight day Tuesday. Protesters gathered in the capital city, Quito, less than 24 hours after Correa called for calm and announced he would delay plans… Read More Correa’s Back-Track on Tax Bills Fails to Halt Ecuador Protests

JPMorgan Says Not to Worry as Ecuador Promotes Digital Currency

By Nathan Gill (Bloomberg) — Ecuador’s home-grown digital currency is nothing to fear. At least that’s the conclusion of analysts from JPMorgan Chase & Co. to Credit Suisse Group AG and Nomura Securities International Inc. The country’s bonds fell last week after the government ordered banks to start accepting a new electronic tender it created… Read More JPMorgan Says Not to Worry as Ecuador Promotes Digital Currency

Ecuador Requiring Banks to Offer Electronic Currency Services

By Nathan Gill (Bloomberg) — Ecuador, which uses the U.S. dollar as its official currency, will require banks to offer services tied to a government-created electronic coin. Lenders with assets greater than $1 billion as of Dec. 31 have 120 days to fulfill the requirement, while smaller banks will get as long as a year,… Read More Ecuador Requiring Banks to Offer Electronic Currency Services

South America’s Commodity Rout Spurs Public Spending on Housing

By Nathan Gill (Bloomberg) — Enrique Perez, who’s been building homes for most of his life in Ecuador, is finally going to make one for himself. Perez is an unlikely beneficiary of the plunge in crude prices. That prompted Ecuador, an OPEC nation, to offer mortgage subsidies to people like Perez, a construction worker. Ecuador… Read More South America’s Commodity Rout Spurs Public Spending on Housing

China’s Andes Said to Join Repsol in Ecuador Oil Drilling Freeze

By Nathan Gill and David Wethe  (Bloomberg) — Andes Petroleum Ecuador Ltd. and Repsol SA, Ecuador’s two biggest foreign oil producers, are shelving plans to drill exploratory wells amid a payment dispute with the OPEC nation’s government, according to two people with direct knowledge of the matter.  Andes, owned by China National Petroleum Corp. and… Read More China’s Andes Said to Join Repsol in Ecuador Oil Drilling Freeze

Ecuador Approves New Labor Law With Changes to Public Pensions

By Nathan Gill (Bloomberg) — Ecuador’s congress approved changes to the Andean nation’s labor laws on Tuesday, including the removal of a government subsidy meant to cover almost half of state pensioners’ monthly payments. Lawmakers approved the measure proposed by President Rafael Correa in a 91-to-29 vote, while government supporters and political opposition groups looked… Read More Ecuador Approves New Labor Law With Changes to Public Pensions

GMO Settles With Ecuador Over Bonds That Defaulted in 2009

By Katia Porzecanski and Nathan Gill (Bloomberg) — Grantham, Mayo, Van Otterloo LLC, a Boston-based money manager, dismissed its lawsuit against Ecuador over debt the nation defaulted on six years ago. The parties agreed to dismiss the suit filed in December in Manhattan federal court, agreeing that each side would pay its own costs and… Read More GMO Settles With Ecuador Over Bonds That Defaulted in 2009

GMO Settles With Ecuador Over Bonds That Defaulted Six Years Ago

By Katia Porzecanski and Nathan Gill(Bloomberg) — Grantham, Mayo, Van Otterloo LLC, a Boston-based money manager, dismissed its lawsuit against Ecuador over debt the nation defaulted on six years ago. The parties agreed to dismiss the suit filed in December in Manhattan federal court, agreeing that each side would pay its own costs and that… Read More GMO Settles With Ecuador Over Bonds That Defaulted Six Years Ago

World’s Costliest Bond Sale in Decade Shows Ecuador Cash Crunch

By Katia Porzecanski and Nathan Gill (Bloomberg) — Six years ago, Ecuador President Rafael Correa’s government denounced the 10 percent in annual interest the country paid on its bonds as “usury.” So when the 51-year-old former economics professor was willing to pay 10.5 percent in a sale of notes this month, it raised speculation the… Read More World’s Costliest Bond Sale in Decade Shows Ecuador Cash Crunch

Ecuador GDP Growth Slowed in 2014 for Third Year on Oil Decline

By Nathan Gill     (Bloomberg) — The rate of growth in Ecuador, South America’s seventh biggest economy, slowed for a third year in 2014 as falling crude oil prices and a refinery shutdown offset gains from higher fishing and electricity output. Gross domestic product rose 3.8 percent in 2014 from a year earlier, less than the… Read More Ecuador GDP Growth Slowed in 2014 for Third Year on Oil Decline

Ecuador Discloses Loans From Wall Street, China as Oil Sinks

By Nathan Gill (Bloomberg) — Ecuador got $924 million in previously undisclosed loans from Deutsche Bank AG and other lenders, showing the extent of President Rafael Correa’s effort to line up a record amount of financing as oil prices plunge. The country took $181 million in two separate loans from units of Deutsche Bank and… Read More Ecuador Discloses Loans From Wall Street, China as Oil Sinks

Peru Top Cement Maker Unacem Says Exports to Offset Mining Slump

By Nathan Gill (Bloomberg) — Union Andina de Cementos SAA, Peru’s biggest cement supplier, expects growth in exports will help offset weakening demand from local miners. Overseas sales of clinker, an ingredient in cement production, will surge 18 percent to about 500,000 metric tons this year, Ricardo Rizo Patron, chairman of the company, said Wednesday… Read More Peru Top Cement Maker Unacem Says Exports to Offset Mining Slump

Ecuador Said to Sell $750 Million of Five-Year Bonds at 10.5%

By Katia Porzecanski and Nathan Gill (Bloomberg) — Ecuador sold $750 million of five-year bonds overseas to meet its financing needs amid a plunge in the price of crude oil. The country sold the securities to yield 10.5 percent, according to a person familiar with the matter, who isn’t authorized to speak publicly and asked… Read More Ecuador Said to Sell $750 Million of Five-Year Bonds at 10.5%

Monsters of Bond Market Now Correa Go-To as China Is Not Enough

By Nathan Gill (Bloomberg) — When President Rafael Correa defaulted on most of Ecuador’s overseas debt in 2008, he disparaged bondholders as “true monsters.” Now, he’s increasingly dependent on their goodwill. Ecuador hired Citigroup Inc. to arrange meetings with investors to gauge demand for what would be the nation’s second international bond sale in the… Read More Monsters of Bond Market Now Correa Go-To as China Is Not Enough

Bondholder Love for Ecuador’s Correa Is Questioned: Andes Credit

By Nathan Gill (Bloomberg) — President Rafael Correa’s resourcefulness in the face of sinking oil prices has made Ecuador a favorite among emerging-market bond investors this year. To AllianceBernstein and Capital Economics, Correa needs to do more to ensure that the goodwill doesn’t prove fleeting. The nation’s debt securities returned 4.9 percent as Correa said… Read More Bondholder Love for Ecuador’s Correa Is Questioned: Andes Credit

Ecuador’s Dollar Reliance Worsens Impact of Oil, Correa Says

By Nathan Gill(Bloomberg) — President Rafael Correa, a former economics professor critical of Ecuador’s use of the dollar as its official currency, said the greenback is worsening the impact of falling crude prices as liquidity in the economy contracts. The reliance on the dollar means the government can’t print more money to increase the amount… Read More Ecuador’s Dollar Reliance Worsens Impact of Oil, Correa Says

Bondholders Embracing Chavez’s Disciple in Ecuador: Andes Credit

By Nathan Gill (Bloomberg) — Nicolas Maduro and Rafael Correa are both socialist disciples of the late Venezuela President Hugo Chavez, but only one is managing to convince bondholders he’s got the ability to weather the collapse in oil prices. While Chavez’s handpicked successor Maduro is struggling to ward off a default, Ecuador counterpart Correa… Read More Bondholders Embracing Chavez’s Disciple in Ecuador: Andes Credit

China Rescues Ecuador Budget From Deeper Cuts as Crude Drops

By Nathan Gill (Bloomberg) — Ecuador, an OPEC nation that relies on crude for about a quarter of revenue, obtained enough financing from China to avoid deeper budget cuts even as its oil price fell below $40 a barrel, Finance Minister Fausto Herrera said. The Latin American country expects total financing needs for 2015 to… Read More China Rescues Ecuador Budget From Deeper Cuts as Crude Drops

Ecuador Gains $5.3 Billion Credit Line From China as Oil Tumbles

By Nathan Gill (Bloomberg) — The Export-Import Bank of China granted Ecuador a $5.3 billion credit line after a slide in oil to an almost six-year low prompted spending cuts for the OPEC member. Finance Minister Fausto Herrera said in a statement published today in the president’s official gazette that the Andean nation will use… Read More Ecuador Gains $5.3 Billion Credit Line From China as Oil Tumbles

White-Bellied Spider Monkey Losing to $18 Billion of Oil

(Originally published in Bloomberg News) By Nathan Gill      (Bloomberg) — Not even the endangered white-bellied spider monkey can escape the lingering consequences of Ecuador President Rafael Correa’s decision to default on $3.2 billion of debt four years ago.      Correa, who hasn’t borrowed from the bond market since calling Ecuador’s creditors “true… Read More White-Bellied Spider Monkey Losing to $18 Billion of Oil

Spain’s Segura Says CNMV Needs Up to 20% Staff Boost

By Nathan Gill Oct. 30 (Bloomberg) — Spain’s stock-market regulator needs an up to 20 percent staff increase to improve market supervision, the regulator’s chief said. Spain will need to add personnel over the next three years to better regulate markets and fulfill its obligations with the European Union, Julio Segura, the president of Spain’s… Read More Spain’s Segura Says CNMV Needs Up to 20% Staff Boost

Chilean Banks’ Combined Profit Rises 7% in September

By Nathan Gill Oct. 29 (Bloomberg) — Chilean banks’ combined profit increased 7 percent in September from the previous month after demand for lending rose amid signs of an economic recovery. Net income in the nine months through September was 849 billion pesos ($1.6 billion), Chile’s banking regulator, known as the SBIF, wrote in an… Read More Chilean Banks’ Combined Profit Rises 7% in September

Endesa Chile Earnings Increase 56% on Lower Costs

By Nathan Gill and James Attwood Oct. 28 (Bloomberg) — Empresa Nacional de Electricidad SA, Chile’s biggest power generator, said third-quarter profit surged 56 percent after it lowered costs. Net income rose to 178 billion pesos ($336 million) from 114 billion pesos a year earlier, the company known as Endesa Chile said today in a… Read More Endesa Chile Earnings Increase 56% on Lower Costs

Chile’s Soquimich Falls to Seven-Week Low on Earnings Decline

By Nathan Gill Oct. 28 (Bloomberg) — Sociedad Quimica y Minera de Chile SA, Chile’s biggest fertilizer producer, tumbled to the lowest price in seven weeks after reporting a 57 percent drop in third-quarter profit. The Santiago-based company, known as Soquimich, retreated 2 percent in Santiago trading to 19,470 pesos, the lowest since Sept. 7.… Read More Chile’s Soquimich Falls to Seven-Week Low on Earnings Decline

Soquimich Profit Drops 57% on Lower Fertilizer Sales

By James Attwood and Nathan Gill Oct. 27 (Bloomberg) — Sociedad Quimica y Minera de Chile SA, Chile’s biggest fertilizer producer, reported a 57 percent drop in third-quarter profit as lower prices dragged down sales. Net income fell to $82.3 million from $191 million a year earlier, the Santiago-based company known as Soquimich wrote today… Read More Soquimich Profit Drops 57% on Lower Fertilizer Sales

Velasco Says Chile Economic Recovery to Be ‘Vigorous’

By Nathan Gill Oct. 27 (Bloomberg) — Chilean Finance Minister Andres Velasco said the country’s economy should have a “vigorous” recovery after it suffered its worst slump in at least a decade. Forecasts for 2010 economic growth are improving and Chile’s labor market is recovering as consumption expands and demand for the country’s exports grows,… Read More Velasco Says Chile Economic Recovery to Be ‘Vigorous’