Credit crunch

Celso Amorim, the Brazilian foreign minister, has previously warned that if Ecuador defaults on a loan from the BNDES, as Brazil's national development bank is known, it would end bilateral trade between the two nations.

"Whoever knows diplomatic practices knows exactly what this [recall] means," Amorim said in Sao Paulo on Friday.

"We have wide co-operation with Ecuador and we will examine this co-operation in light of these decisions."

Wall Street credit rating agencies have said Ecuador is among the least credit worthy countries in Latin America.

The country defaulted on $5.8 billion in bonds in 1999, also amid a sharp fall in oil prices.