Brazil recalls Ecuador ambassador
Diplomatic row over repayment of Brazilian loan escalates.
Published On 21 Nov 2008
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.
Source: News Agencies