Ecuador's Creditors Say Sovereign Needs To Improve Restructuring Offer

• Creditors holding Ecuador's sovereign debt issued a statement on Friday saying they commended to the government for its approach to restructuring $17.4Bn worth of bonds, but the terms need to be improved and strengthened for the equal treatment of all investors.
• The statement was issued by two groups of investors. The Steering Committee (SC) for more than 25 global institutional investors who hold various sovereign bonds is being advised by BroadSpan Capital and UBS, while the ad hoc group of investors who hold Ecuador 2024 notes is being advised by Quinn Emanuel Urquhart & Sullivan LLP.
• Finance Minister Richard Martinez said in a press conference on July 6^th that, existing debt capital would be reduced to $15.8Bn from $17.4Bn; interest rates would come down to an average of 5.3% from 9.2. Maturities are to be lengthened 12.7 years on average from 6.1 years on average. This will be done by extending the maturity of some bonds to 2040. Currently, the longest maturity is 2030.
• A grace period was achieved both for capital and interest payments so for the next five years, Ecuador will not make any capital payments.

(Source: Latinfinance)