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Latin bondage

Article Abstract:

Ecuador has decided to default on one type of Brady bonds despite having foreign currency reserves. Ecuador has a total foreign debt of over $13 billion and its currency has dropped in value in relation to the US dollar. The International Monetary Fund is seeking bank restructuring and fiscal reform prior to releasing a loan. Ecuador has not achieved an agreement with the bondholder, and will have to achieve this. The bondholders are likely to argue that other creditors should contribute to a restructuring.

External debts

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Chaos, continued

Article Abstract:

Ecuador faces a drop in the value of its currency, and rising unemployment. The government also faces a public sector strike in response to plans to raise taxes. There have been limits on withdrawals from banks, and depositors argue that they are paying for problems caused by mismanagement at the banks. Four members of the five-member central bank board have resigned, and the International Monetary Fund has called on the government to take a tougher stance against the weaker banks.

Banking industry, Strikes

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The Indians and the dollar

Article Abstract:

Ecuador is to introduce the US dollar, though there is concern among native peoples that price rises could follow. The Ecuadorean Confederation of Indigenous Nationalities (Conaie) has become the strongest of such organizations in Latin America. The government aims to ensure support from Conaie through funds for social programs and education. Gasoline prices are to rise by 100% in summer 2000, and this could lead to a clash between the government and Conaie.

South American native peoples, Native South Americans

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