Press Release

Ecuador achieves necessary majority of the vote to restructure its global bonds

Bnamericas Published: Monday, August 03, 2020

By the Ministry of Economy and Finance

Based on the consents (votes) received until 9:00 am (Quito time) on Monday, August 3, Ecuador reached the necessary vote to restructure its debt, on the original approach established by the country, in its request for consent of July 20 . It should be remembered that our proposal establishes:

- Reduction of USD 1,540 million of the principal of the debt.

- Relief in the flow for more than USD 10 billion in the next 5 years.

- Decrease in the average interest rate from 9.2% to 5.3%.

- Doubling the term, from 6.1 years on average to 12.7 years.

- Extension of the grace period: 5 years in capital and practically 2 years in interest.

- Deferral of unpaid and accumulated interest, between March and August (more than USD 1 billion), now payable between 2026 and 2030, with a rate of 0%.

Likewise, the Republic, following good international practices, has decided to extend, until Friday, August 7, and only for those holders who did not vote until today, the possibility that they can also exchange bonds that they currently hold for the three new ones (2030 , 2035 and 2040). This opportunity offered by the Republic will allow holders who have not given their consent to obtain more liquid instruments.

After August 7, the rigorous administrative and legal processes will continue, so that, once all the conditions have been met, the process can be concluded. The date of the formal exchange of the bonds, that is, the closing of the operation, is expected to occur on August 12 or as soon as possible after that date, but in any case not later than August 20.

In the next few hours, once the vote closes, we will share more information about the negotiation process.

This is a machine translation of the original press release issued in Spanish.

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