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Down and Out in Paris and London and Quito

MEV doing her thing today

Maria Elsa Viteri is a busy lady. Ecuador’s FinMin has today presented her 2008 fiscal transparency report which has lots of bits and bobs and technical stuffs (here’s her full presentation, and it’s pretty good in fact…Spanish language of course) but the one to take away for outsiders looking in is that the country’s fiscal revenues are forecast to come up short by some U$1.34Bn to meet the U$14.1Bn 2009 expenditure budget. But not to worry, sez Viteri, cos loans from the Latin American Reserve Fund (FLR), the Interamerican Development Bank (BID), the Andean Development Corporation (CAF) and some tips thrown in from China and Iran will cover the gap.

Then MEV is off on a jolly jaunt to Europe (DJNW link) in the last two weeks of this month as she visits Paris and London to talk face-to-face with the holders of the defaulted bonds. She mentioned as a presser yesterday that Ecuador might be able to pay a tad over the 30c on the dollar that’s the basline offer for the debt retirement, but there wasn’t much cash around and any extra would be small. This has been taken as a softening of position by Studmuffin, as he’s clearly given his right-hand-lady in all things economy a bit of room…not much, just a bit. However she also specifically said the payments would be on the principal only and no interest gets paid.

If you recall, Ecuador bondholders protesters-holder-outers made their first move last week, demanding full payment and interest. Let’s see if MEV wins hearts and minds in Europe and heads those pesky vulture funds off at the pass. Watch this space.

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