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


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