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Ecuador accounts frozen in Luxembourg after dispute with Perenco

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The firm said in a statement that it is trying to enforce the $412 million payment awarded last year by the International Center for Settlement of Investment Disputes. The company did not name the court involved.

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“Perenco to date, more than a year later, has still not received a single dollar from Ecuador”, the company noted. Measure “raises the possibility that the country will default on its bond coupon payments and obligations to bondholders and creditors”.

However, Ecuador’s next major foreign bond payments are not due until January, leaving authorities time to resolve the issue. Additionally, the nation has a record over $8 billion in foreign exchange reserves. Ecuador’s dollar bonds due in 2030 and 2035 were trading less than a cent lower on Monday, according to indicative prices compiled by Bloomberg.

Neither the Ministry of Economy and Finance nor the company immediately responded to requests for comment.

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The nation’s bonds, issued as part of a pandemic-driven $17.4 billion restructuring in 2020, have tumbled since mid-June, hurt by three weeks of violent protests over fuel costs and the price of electricity. life.

As part of the response to the crisis, President Guillermo Lasso appointed a new economy minister, Pablo Arosemena, who last week held initial meetings with the International Monetary Fund and other lenders in Washington.

“Perenco remains hopeful that the Government of Ecuador will finally comply with its international obligations, demonstrate its commitment to the rule of law and fulfill its promises to foreign investors by paying the award without further delay”the company said.

The dispute dates back to the 2009 confiscation of Perenco’s assets in Ecuador by President Rafael Correa, now in self-exile in Belgium, amid a windfall tax dispute.

Source: Gestion

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