Ecuador, which defaulted on $3.2 billion of its foreign debt four years ago, is planning to tap global credit markets this year as demand for higher-yielding assets drives down borrowing costs, Standard & Poor’s said.
Ecuador and Peru replaced their ambassadors to resolve a diplomatic crisis after a fight between Ecuador’s envoy and two local women in a Lima supermarket threatened to disrupt relations between the two Andean nations.
Ecuador’s bid to reduce poverty by taxing its banks is threatening to deepen the nation’s economic slump, as lenders curb credit and ratchet up interest rates after profits plunged to a three-year low.
Ecuador’s anti-monopoly watchdog, seeking to improve mobile-phone coverage, suspended about 2,000 exclusive contracts used by carriers such as America Movil SAB to get prime locations for network towers.
Ecuador President Rafael Correa, re-elected in February on pledges to “radicalize” his socialist push, is proposing to modernize the country’s markets after the fashion of capitalist countries he has criticized.
Ecopetrol SA, Colombia’s state- controlled oil company, dropped to a three-month low as the government announced that oil companies will pay a higher withholding tax than that paid by agricultural and industrial businesses and as global crude prices fell.
Peru’s sol rose to its strongest level in a month as the government’s plans to double investment in its offshore oil and natural gas industry stoked the outlook for overseas capital entering the country.