Ecuador: Selling gold

Having defaulted “by choice” in the past, Correa continues to pave the way for issuing debt in the future:
Ecuador Sends Gold Bricks to Goldman Sachs in Liquidity Hunt

Ecuador agreed to transfer more than half its gold reserves to Goldman Sachs Group Inc. for three years to give the government easier access to cash.

Money quote (emphasis added):

The deal comes as the South American country’s government, which defaulted on about $3.2 billion of bonds five years ago, seeks to cover a budget deficit forecast by the Finance Ministry to swell to a record $4.94 billion this year. President Rafael Correa said in April he also planned to sell about $700 million of foreign debt this year in the country’s first international bond sale since the 2008 and 2009 default.

Correa must be counting on enough suckers being born every minute.

Sing it!

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One Response to “Ecuador: Selling gold”

  1. Ecuador: Something’s rotten in the gold swap | Fausta's Blog Says:

    […] up on the Ecuadorian gold story, it turns out it’s not quite a sale, it’s a swap: On Tuesday, Ecuador announced […]