Over the weekend Bloomie sent its reporter Daniel Cancel from Caracas to Quito to cover the bonds saga at ground zero. And it was worth it just to get the first and only sane comment from the market as featured in this note today. Buried on paragraph 13 of the note is this;
“The decision to pay or not has become a political one rather than an economic or financial decision,” said Jorge Cherrez, president of Quito-based brokerage IB Corp. “Our countries love to hear two things: ‘Down with the gringos, and I’m going to suspend debt payments.’ The government can pay and will pay, but they’ll leave the issue uncertain until the last minute.”
That is exactly right, Señor Cherrez. What a difference it makes to actually ask somebody that lives in Quito and knows what they’re talking about.