[Marxism] Ecuador defaults on foreign debt

[Eli Stephens <elishastephens@xxxxxxxxxxx>]

URL: 
http://www.washingtonpost.com/wp-dyn/content/article/2008/12/12/AR2008121204105_pf.html

Excerpts:

Ecuador's President Rafael Correa said yesterday that his nation is
defaulting on its foreign debt, fulfilling his longtime populist pledge
to leave international creditors in the lurch.

"We are ready to
accept the consequences," Correa said, according to a transcript of his
comments. He described the debt as "immoral," saying the government
would take its findings that past debt sales were tainted by graft and
bribes to international courts.

It is exceedingly rare in global
finance for a nation not to honor its debt because it doesn't want to,
as opposed to not being able to make payments because of a financial
crunch. Some analysts fear it may set a precedent, emboldening other
leaders who share Correa's ideology -- such as Venezuela's Hugo Chávez
-- to make similar pronouncements.


Eli Stephens
 Left I on the News
 http://lefti.blogspot.com


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