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View Full Version : Ecuador refuses to pay debts of past dictators



cyu
17th December 2008, 02:13
From http://www.fpif.org/fpiftxt/5744

For the first time in history, the government's defense isn't based on an inability to pay. Ecuadorian President Rafael Correa explained rather that he was unwilling to continue to pay debts that are "obviously immoral and illegitimate."

In the 1970s, unscrupulous international lenders facilitated some $3 billion in borrowing by Ecuadorian dictators who blew most of the money on the military. After the transition to democracy, the Ecuadorian people got stuck holding the bag.