IDEAS home Printed from https://ideas.repec.org/p/cpm/notfdl/2403.html
   My bibliography  Save this paper

Lessons from the Ecuador 2020 Debt Restructuring Case

Author

Listed:
  • Chekir, Hamouda
  • Cueva, Simon
  • Gonzalez, Jose Antonio

Abstract

Ecuador, like several other frontier economies with high levels of external debt, currently faces severe liquidity constraints. In recent years, Ecuador has made significant efforts to overcome these challenges. This includes successfully completing an ambitious program with the International Monetary Fund, restructuring its external commercial debt in 2020 (which amounted to over US$17 billion), and addressing its debt to Chinese lending institutions in 2022 (approximately US$4 billion). In March 2020, Ecuador faced a dual crisis with plummeting oil prices and the Covid-19 health crisis, leading to a significant loss of fiscal revenues. Subsequently, Ecuador publicly announced severe liquidity shortages and its inability to fully meet its debt obligations. This led to missed coupon payments and comprehensive debt restructuring negotiations, presenting a unique case with several noteworthy takeaways for future debt restructuring episodes. This research paper delves into the 2020 debt restructuring episode to offer valuable insights on handling liquidity vulnerabilities and engaging in constructive dialogue with key creditors.

Suggested Citation

  • Chekir, Hamouda & Cueva, Simon & Gonzalez, Jose Antonio, 2024. "Lessons from the Ecuador 2020 Debt Restructuring Case," FDL Policy Notes 2403, CEPREMAP.
    • Handle: RePEc:cpm:notfdl:2403
    as

    Download full text from publisher

    File URL: https://findevlab.org/wp-content/uploads/2024/04/FDL_Ecuador_Policy_Note_15_April2024.pdf
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cpm:notfdl:2403. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Martin Kessler (email available below). General contact details of provider: https://edirc.repec.org/data/ceprefr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.