April 10, 2014 / 12:30 AM / 4 years ago

Ecuador's Correa says will honor terms of proposed bond offer

CAMBRIDGE, Mass., April 9 (Reuters) - Ecuadorean President Rafael Correa said on Wednesday that his country would honor the terms of the $700 million bond offering it plans to make to foreign investors this year, its first international debt sale since a $3.2 billion default in 2008.

Correa, a leftist who has been highly critical of the United States and powerful financial institutions, said the terms of the proposed bond sale would be very different than those of the debts defaulted on during the global financial crisis.

“If we are participating in international markets we, as usual, are going to honor this debt,” Correa told an audience at Harvard University in Cambridge, Massachusetts, just outside Boston.

He said the oil-producing Andean nation, which disclosed its planned offering on Sunday, had other financial options.

He said the prior default, which followed his 2007 election, had in part resulted from what he described as unfair terms.

“We made an audit of this external debt and the things that we found were really, really terrible,” Correa said, noting that debt terms had limited the country’s ability to spend on its own people. “For this reason we stopped paying this debt. But legitimate debt has been always honored by our country and by my government.”

Correa in February asked his cabinet to resign after his party lost control of Quito, the nation’s capital, in an election. Analysts described the defeat as a rebuke to his administration’s perceived interference in local governments. (Reporting by Scott Malone; Editing by Cynthia Osterman)

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