Brazil recalls Ecuador ambassador

Diplomatic row over repayment of Brazilian loan escalates.

    Rafael Correa has said Ecuador may not repay
    its international debts [AFP]

    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: Agencies


    YOU MIGHT ALSO LIKE

    Interactive: Plundering Cambodia's forests

    Interactive: Plundering Cambodia's forests

    Meet the man on a mission to take down Cambodia's timber tycoons and expose a rampant illegal cross-border trade.

    The priceless racism of the Duke of Edinburgh

    The priceless racism of the Duke of Edinburgh

    Prince Philip has done the world an extraordinary service by exposing the racist hypocrisy of "Western civilisation".

    China will determine the future of Venezuela

    China will determine the future of Venezuela

    There are a number of reasons why Beijing continues to back Maduro's government despite suffering financial losses.