President of Ecuador Rafael Correa has said that his country will not pay the immoral and illegitimate foreign debt. Ecuador has a foreign debt of $10bn which the president says was contracted illegally by a previous administration. He has given orders not to make interest payment which is due on Monday which means that the country would default on its loan payment.
Ecuador will be the first country in Latin America to default since 2001 when Argentina defaulted on its foreign obligations due to financial meltdown in the country. The Ecuador president has described the international donors as “monsters”.
I think that the president has taken a very bold step and other nations who are groaning under the yoke of heavy foreign debt must also follow its example. A case in point is Pakistan which has to take fresh loan from IMF under tough conditions in order to avoid a default in December. I think it highly unadvisable to take more loan in order to pay back heavy interest on existing loan.
I think that this debt is not only illegal but it is odious. Corrupt leaders in developing countries have taken heavy loans from international lenders without getting it approved from the parliament. It is time that all heavy indebted country think seriously about it and say that they would not pay any of the illegal debt.
President of Ecuador Rafael Correa has said that his country will not pay the immoral and illegitimate foreign debt. Ecuador has a foreign debt of $10bn which the president says was contracted illegally by a previous administration. He has given orders not to make interest payment which is due on Monday which means that the country would default on its loan payment.
Ecuador will be the first country in Latin America to default since 2001 when Argentina defaulted on its foreign obligations due to financial meltdown in the country. The Ecuador president has described the international donors as “monsters”.
I think that the president has taken a very bold step and other nations who are groaning under the yoke of heavy foreign debt must also follow its example. A case in point is Pakistan which has to take fresh loan from IMF under tough conditions in order to avoid a default in December. I think it highly unadvisable to take more loan in order to pay back heavy interest on existing loan.
I think that this debt is not only illegal but it is odious. Corrupt leaders in developing countries have taken heavy loans from international lenders without getting it approved from the parliament. It is time that all heavy indebted country think seriously about it and say that they would not pay any of the illegal debt.
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