Something’s gotta give if enough honest people try hard enough!
* Ecuador Declares Foreign Debt Illegitimate *
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In November 2008, Ecuador became the first country to undertake an examination of the legitimacy and structure of its foreign debt. An independent debt audit commissioned by the government of Ecuador documented hundreds of allegations of irregularity, illegality, and illegitimacy in contracts of debt to predatory international lenders. The loans, according to the report, violated Ecuador’s domestic laws, US Securities and Exchange Commission regulations, and general principles of international law. Ecuador’s use of legitimacy as a legal argument for defaulting set a major precedent; indeed, the formation of a debt auditing commission sets a precedent.
From Blog the Debt
Ecuador Defaults on Illegitimate Debt
By Hayley Hathaway, Jubilee USA Network
On Friday, Ecuador’s President Rafael Correa announced that his government would default on payments on some of its commercial debts. The decision comes in response to detailed recommendations from the Public Debt Audit Commission, an independent commission formed by the Ecuadorian government in 2007 in response to calls from civil society. The commission examined Ecuador’s debts over the period more than a year and its 172-page report (Click here for Spanish) evaluates 30 years of Ecuador’s debt and documents hundreds of examples of irregularities and claims of illegitimacy.
WATCH VIDEO EXPLAINING ECUADOR’S DEBT AND AUDIT COMMISSION