Reply #5: This is how you kill off foreign investment in Ecuador [View All]

[Zorro]

I believe Correa has not yet decided to default on the debt, because there may be serious ramifications to the Ecuadorean economy if he does.

And he, like his colleague in Venezuela, will be facing reduced oil revenues in the foreseeable future. The reduced ability to service this debt may be a motivating factor for considering a default.

Correa is also reportedly planning to increase import tariffs on over 900 items, which he imagines will increase government revenues while protecting domestic industries.

Perhaps these are wise actions to take, but I have my doubts.