Ecuador unlikely to default in 2007, says JP Ecuador unlikely to default in 2007, says JP Morgan
"NEW YORK, Nov 27 (Reuters) - JP Morgan said on Monday Ecuador is unlikely to default in 2007 despite pledges of a debt restructuring that Rafael Correa, who leads the vote count of Sunday's presidential elections, made during the campaign.
The bank bucked a wave of negative recommendations on Ecuador's bonds by telling investors to remain "marketweight" on the country's debt. It also said it would be a "better buyer" of the securities if valuations reach the extreme lows seen before the first round of elections.
"Despite the concerning (but still vague) rhetoric on debt restructuring, we do not expect Correa to resort to default in the short term, since oil inflows will allow his administration to install a robust social spending and still service Ecuador's moderate debt burden," JP Morgan wrote in a research note."...............