For Correa, his objective is accomplished, his base of support strengthened.

....and his foreign debt is reduced!

Noodle it out: Ecuador's bonds are priced in dollars. Their currency is also the dollar. Ergo, the typical reaction to increased risk in sovereign debt - sell the currency - doesn't happen. Instead, only the bonds get sold and Ecuador can buy back some of its debt at a discount.

But surely they wouldn't try that again?

ebear