Government will seek consensus to renegotiate foreign debt "illegitimate"

Ecuador will seek agreements with its creditors to renegotiate foreign debt and redeem that the Government considers "illegitimate", but the authorities do not rule suspend payment of its obligations if it is impossible to reach a consensus, said a government auditor.

The president Rafael Correa last week raised fears of the market, after stating that cancelled the debt it is proved illegitimate by a committee that formed last year to review all the liabilities of the country. The agent returned to the arguments with which shook the Ecuadorian bonds in 2007 and assured that will not pay claims made by corrupt officials from previous governments or unfair conditions for the country.

Franklin Canelos, vice president of the expert group that audits the Ecuadorian debt, said in an interview that the Commission has found illegitimate operations in nearly all types of debt issued by the Andean country, although the final results will be published in mid-July.

"It would not make sense that the Government decided unilaterally, everything would be consensual. We talked about redemption, forgiveness and the possibility of negotiating with creditors of the credit terms," said Canelos, referring to the options presented to the Government.

"Another possibility would be judicialization debts should not have the flexibility to sit down to negotiate," added the expert, who refused to link the commission with an ideology and called his work "technical".

Correa also could decide to suspend payment of some debt, said Canelos. "But I do not think the government will declare the suspension of payments of any debt," he said.

When asked specifically by the Global bonds of Ecuador, said that the authorities did not discard a moratorium on the stretches that are described as illegitimate, which said signs have been found since negotiations were held between officials and irregular bondholders.

"The government can use different strategies with different debts (but) the president has the final word," said the auditor, an economist for 64 years, second in the committee which is chaired by Ricardo Patino, who spooking the market with a "default" when was minister of Finance.