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ATFA Urges Ecuador to Not Follow "Argentine-Style" Default Example
Press Release
January 18, 2007

FOR IMMEDIATE RELEASE
Thursday, January 18, 2007
Contact: info@atfa.org
1-888-662-2382
www.atfa.org


WASHINGTON Today, the American Task Force Argentina (ATFA) urged Ecuadorian President Rafael Correa to reconsider its exploration of an "Argentine-style" debt restructuring, citing the historically-high rejection rate for Argentina's 2005 restructuring offer and Argentina's inability to access global capital markets since that time. International wire reports report that at Ecuador's request, President Kirchner will send a team of Argentine officials to advise President Correa's administration on restructuring tactics honed during Argentina's 2001 default.

Correa regularly threatened a restructuring as part of his presidential campaign "citizens' revolution", telling reporters in New York last September that he "cannot dismiss an Argentina solution" to restructure his country's $10 billion in sovereign debt. Argentina defaulted on more than US $95 billion in sovereign debt in December of 2001, the largest sovereign debt default in history. According to recent analysis, the Argentine default and the harsh terms of the subsequent restructuring cost investors and governments worldwide about $140 billion. More than $20 billion in bonds remain outstanding.

"Global capital markets have been concerned that the unprecedented terms of Argentina's default and restructuring would set a dangerous precedent. Ecuador's latest moves indicate that these concerns are indeed warranted," said ATFA Co-Chairman Robert Shapiro. "If President Correa is looking for advice on how to improve his country's standing in the international arena, he has turned to the wrong people."

Discussing Ecuador's pursuit of an "Argentine-style" default, The Latin Business Chronicle wrote on January 2, 2007 that "globally, such a debt default could trigger a mini-crisis in financial markets," adding that "Ironically, a possible Ecuadorian debt default comes five years after Argentina's infamous one."

ATFA, through a variety of events and research initiatives, works to encourage the United States government and other Argentine debt stakeholders to take action on behalf of American taxpayers, businesses and bondholders. ATFA's website, www.atfa.org, serves as a clearinghouse for news and information related to Argentina's restructuring and the ATFA's efforts.

Made up of major creditor groups, the ATFA is co-chaired by The Honorable Robert J. Shapiro, former Under Secretary of Commerce for Economic Affairs in the Clinton Administration and Ambassador Nancy Soderberg, Ambassador at the U.S. Mission to the United Nations in New York from 1997 to 2001.

For additional information, please visit our new website at www.atfa.org, or contact info@atfa.org, or +1-888-662-2382.

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